Delaware | 001-11307-01 | 74-2480931 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
333 North Central Avenue | |
Phoenix, AZ | 85004-2189 |
(Address of principal executive offices) | (Zip Code) |
333 North Central Avenue Phoenix, AZ 85004 | Financial Contacts: | Media Contact: | |||
Kathleen L. Quirk (602) 366-8016 | David P. Joint (504) 582-4203 | Eric E. Kinneberg (602) 366-7994 |
▪ | Net loss attributable to common stock totaled $1.85 billion, $1.78 per share, for second-quarter 2015. After adjusting for net charges totaling $2.0 billion, $1.92 per share, second-quarter 2015 adjusted net income attributable to common stock totaled $143 million, $0.14 per share. |
▪ | Consolidated sales totaled 964 million pounds of copper, 352 thousand ounces of gold, 23 million pounds of molybdenum and 13.1 million barrels of oil equivalents (MMBOE) for second-quarter 2015, compared with 968 million pounds of copper, 159 thousand ounces of gold, 25 million pounds of molybdenum and 16.0 MMBOE for second-quarter 2014. |
▪ | Consolidated sales for the year 2015 are expected to approximate 4.2 billion pounds of copper, 1.3 million ounces of gold, 93 million pounds of molybdenum and 52.3 MMBOE, including 1.0 billion pounds of copper, 315 thousand ounces of gold, 24 million pounds of molybdenum and 13.6 MMBOE for third-quarter 2015. |
▪ | Average realized prices were $2.71 per pound for copper, $1,174 per ounce for gold and $67.61 per barrel for oil (including $11.79 per barrel for cash gains on derivative contracts) for second-quarter 2015. |
▪ | Consolidated unit net cash costs for second-quarter 2015 averaged $1.50 per pound of copper for mining operations and $19.04 per barrel of oil equivalents (BOE) for oil and gas operations. |
▪ | Operating cash flows totaled $1.1 billion (net of $104 million in working capital uses and changes in other tax payments) for second-quarter 2015. Based on current sales volume and cost estimates and assuming average prices of $2.50 per pound for copper, $1,150 per ounce for gold, $6 per pound for molybdenum and $56 per barrel for Brent crude oil for the second half of 2015, operating cash flows for the year 2015 are expected to approximate $3.6 billion. |
▪ | Capital expenditures totaled $1.7 billion for second-quarter 2015, including $0.6 billion for major projects at mining operations and $0.8 billion for oil and gas operations. Capital expenditures are expected to approximate $6.3 billion for the year 2015, including $2.5 billion for major projects at mining operations and $2.8 billion for oil and gas operations. |
▪ | FCX has made substantial progress toward the completion of its major mining development projects, which are expected to result in increased near-term production, lower unit costs, declining capital expenditures and growth in free cash flow over the next several quarters. In addition, positive oil and gas drilling and development activities are expected to result in a growing oil production profile. FCX remains focused on maintaining a strong balance sheet and on continuing to manage costs, capital spending plans and other actions as required to maintain financial strength. |
▪ | On June 23, 2015, Freeport-McMoRan Oil & Gas Inc. filed a registration statement related to its potential initial public offering (IPO) of Class A common stock representing a minority interest in the entity. |
▪ | At June 30, 2015, consolidated debt totaled $20.9 billion and consolidated cash totaled $466 million. |
Freeport-McMoRan | 1 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Revenuesa,b,c | $ | 4,248 | $ | 5,522 | $ | 8,401 | $ | 10,507 | ||||||||
Operating (loss) incomea | $ | (2,374 | ) | d,e,f | $ | 1,153 | g,h | $ | (5,337 | ) | d,e,f,i | $ | 2,264 | g,h | ||
Net (loss) income attributable to common stockb,c,j | $ | (1,851 | ) | d,e,f,k,l | $ | 482 | g,h,m | $ | (4,325 | ) | d,e,f,i,k,l | $ | 992 | g,h,m | ||
Diluted net (loss) income per share of common stockb,c | $ | (1.78 | ) | d,e,f,k,l | $ | 0.46 | g,h,m | $ | (4.16 | ) | d,e,f,i,k,l | $ | 0.95 | g,h,m | ||
Diluted weighted-average common shares outstanding | 1,040 | 1,045 | 1,040 | 1,045 | ||||||||||||
Operating cash flowsn | $ | 1,069 | $ | 1,386 | $ | 1,786 | $ | 2,587 | ||||||||
Capital expenditures | $ | 1,661 | $ | 1,950 | $ | 3,528 | $ | 3,562 | ||||||||
At June 30: | ||||||||||||||||
Cash and cash equivalents | $ | 466 | $ | 1,458 | $ | 466 | $ | 1,458 | ||||||||
Total debt, including current portion | $ | 20,902 | $ | 20,190 | $ | 20,902 | $ | 20,190 | ||||||||
a. | For segment financial results, refer to the supplemental schedule, "Business Segments," beginning on page XI, which is available on FCX's website, "fcx.com." |
b. | Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $(20) million ($(10) million to net loss attributable to common stock or $(0.01) per share) for second-quarter 2015, $35 million ($16 million to net income attributable to common stock or $0.01 per share) for second-quarter 2014, $(106) million ($(50) million to net loss attributable to common stock or $(0.05) per share) for the first six months of 2015 and $(118) million ($(65) million to net income attributable to common stock or $(0.06) per share) for the first six months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page X, which is available on FCX's website, "fcx.com." |
c. | Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling $(95) million ($(59) million to net loss attributable to common stock or $(0.06) per share) for second-quarter 2015, $(7) million ($(4) million to net income attributable to common stock or less than $(0.01) per share) for second-quarter 2014, $(143) million ($(89) million to net loss attributable to common stock or $(0.09) per share) for the first six months of 2015 and $8 million ($5 million to net income attributable to common stock or less than $0.01 per share) for the first six months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page X, which is available on FCX's website, "fcx.com." |
Freeport-McMoRan | 2 |
d. | Includes charges of $2.7 billion ($1.7 billion to net loss attributable to common stock or $1.61 per share) for second-quarter 2015 and $5.8 billion ($3.6 billion to net loss attributable to common stock or $3.47 per share) for the first six months of 2015 to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Refer to page 11 for further discussion. |
e. | Includes charges totaling $59 million ($38 million to net loss attributable to common stock or $0.04 per share) for second-quarter 2015 and $63 million ($41 million to net loss attributable to common stock or $0.04 per share) for the first six months of 2015 for lower of cost or market (LCM) adjustments primarily attributable to molybdenum inventories. |
f. | Includes net charges of $22 million ($14 million to net loss attributable to common stock or $0.01 per share) for second-quarter 2015 and $39 million ($24 million to net loss attributable to common stock or $0.02 per share) for the first six months of 2015 for idle/terminated rig costs and inventory write-downs at oil and gas operations. |
g. | Includes net charges for adjustments to environmental obligations and related litigation reserves of $69 million ($68 million to net income attributable to common stock or $0.06 per share) for the second quarter and first six months of 2014. |
h. | Includes charges of $56 million ($30 million to net income attributable to common stock or $0.03 per share) for second-quarter 2014 and $109 million ($58 million to net income attributable to common stock or $0.06 per share) for the first six months of 2014 for fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT Freeport Indonesia's (PT-FI) operating rates. |
i. | The first six months of 2015 includes a net gain of $39 million ($25 million to net loss attributable to common stock or $0.02 per share) associated with the sale of FCX's one-third interest in the Luna Energy power facility in New Mexico. |
j. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. For a summary of net impacts from changes in these deferrals, refer to the supplemental schedule, "Deferred Profits," on page XI, which is available on FCX's website, "fcx.com." |
k. | The second quarter and first six months of 2015 include a gain of $92 million ($0.09 per share) related to net proceeds received from insurance carriers and other third parties related to a shareholder derivative litigation settlement. |
l. | As a result of the impairment to oil and gas properties, FCX recorded tax charges of $305 million ($0.29 per share) for second-quarter 2015 and $763 million ($0.73 per share) for the first six months of 2015 to establish a valuation allowance primarily against United States (U.S.) federal alternative minimum tax credits. |
m. | The second quarter and first six months of 2014 included a tax charge of $58 million ($0.06 per share) associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. |
n. | Includes net working capital uses and changes in other tax payments of $104 million for second-quarter 2015, $364 million for second-quarter 2014, $190 million for the first six months of 2015, and $777 million for the first six months of 2014. |
Freeport-McMoRan | 3 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2015 | 2014a | 2015 | 2014a | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 977 | 931 | 1,892 | 1,879 | |||||||||||||
Sales, excluding purchases | 964 | 968 | 1,924 | 1,839 | |||||||||||||
Average realized price per pound | $ | 2.71 | $ | 3.16 | $ | 2.70 | $ | 3.17 | |||||||||
Site production and delivery costs per poundb | $ | 1.85 | $ | 1.99 | $ | 1.89 | $ | 1.94 | |||||||||
Unit net cash costs per poundb | $ | 1.50 | $ | 1.72 | $ | 1.57 | $ | 1.64 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 367 | 166 | 626 | 397 | |||||||||||||
Sales, excluding purchases | 352 | 159 | 615 | 346 | |||||||||||||
Average realized price per ounce | $ | 1,174 | $ | 1,296 | $ | 1,183 | $ | 1,299 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Production | 25 | 25 | 49 | 49 | |||||||||||||
Sales, excluding purchases | 23 | 25 | 46 | 52 | |||||||||||||
Average realized price per pound | $ | 9.51 | $ | 13.43 | $ | 9.84 | $ | 12.27 | |||||||||
Oil Equivalents | |||||||||||||||||
Sales volumes | |||||||||||||||||
MMBOE | 13.1 | 16.0 | 25.6 | 32.2 | |||||||||||||
Thousand BOE (MBOE) per day | 144 | 176 | 142 | 178 | |||||||||||||
Cash operating margin per BOEc | |||||||||||||||||
Realized revenues | $ | 50.04 | $ | 77.53 | $ | 46.95 | $ | 77.37 | |||||||||
Cash production costs | 19.04 | 19.57 | 19.62 | 19.03 | |||||||||||||
Cash operating margin | $ | 31.00 | $ | 57.96 | $ | 27.33 | $ | 58.34 |
a. | The 2014 periods include the results of the Candelaria and Ojos del Salado mines (Candelaria/Ojos) that were sold in November 2014, and the Eagle Ford properties that were sold in June 2014. Sales volumes from Candelaria/Ojos totaled 80 million pounds of copper and 20 thousand ounces of gold for second-quarter 2014 and 174 million pounds of copper and 43 thousand ounces of gold for the first six months of 2014; sales volumes from Eagle Ford totaled 4.0 MMBOE (44 MBOE per day) for second-quarter 2014 and 8.7 MMBOE (48 MBOE per day) for the first six months of 2014. |
b. | Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIV, which is available on FCX's website, "fcx.com." |
c. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV, which is available on FCX's website, “fcx.com.” |
Freeport-McMoRan | 4 |
Freeport-McMoRan | 5 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 469 | 395 | 921 | 780 | |||||||||||||
Sales | 486 | 423 | 958 | 794 | |||||||||||||
Average realized price per pound | $ | 2.77 | $ | 3.16 | $ | 2.73 | $ | 3.21 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productiona | 10 | 9 | 19 | 17 | |||||||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.78 | $ | 1.87 | $ | 1.79 | $ | 1.87 | |||||||||
By-product credits | (0.16 | ) | (0.28 | ) | (0.17 | ) | (0.25 | ) | |||||||||
Treatment charges | 0.12 | 0.11 | 0.13 | 0.12 | |||||||||||||
Unit net cash costs | $ | 1.74 | $ | 1.70 | $ | 1.75 | $ | 1.74 | |||||||||
a. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at the North America copper mines. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIV, which is available on FCX's website, "fcx.com." |
Freeport-McMoRan | 6 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2015 | 2014a | 2015 | 2014a | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 188 | 300 | 381 | 614 | |||||||||||||
Sales | 178 | 310 | 378 | 617 | |||||||||||||
Average realized price per pound | $ | 2.69 | $ | 3.17 | $ | 2.68 | $ | 3.16 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | — | 21 | — | 42 | |||||||||||||
Sales | — | 20 | — | 43 | |||||||||||||
Average realized price per ounce | $ | — | $ | 1,302 | $ | — | $ | 1,302 | |||||||||
Molybdenum (millions of recoverable pounds) | |||||||||||||||||
Productionb | 2 | 2 | 4 | 5 | |||||||||||||
Unit net cash costs per pound of copperc | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.77 | $ | 1.64 | $ | 1.76 | $ | 1.57 | |||||||||
By-product credits | (0.04 | ) | (0.23 | ) | (0.06 | ) | (0.24 | ) | |||||||||
Treatment charges | 0.17 | 0.18 | 0.17 | 0.18 | |||||||||||||
Royalty on metals | — | 0.01 | — | — | |||||||||||||
Unit net cash costs | $ | 1.90 | $ | 1.60 | $ | 1.87 | $ | 1.51 | |||||||||
a. | The 2014 periods include the results of Candelaria/Ojos that were sold in November 2014. Candelaria/Ojos had sales volumes totaling 80 million pounds of copper and 20 thousand ounces of gold for second-quarter 2014 and 174 million pounds of copper and 43 thousand ounces of gold for the first six months of 2014. Excluding Candelaria/Ojos, South America mining's unit net cash costs averaged $1.55 per pound of copper for second-quarter 2014 and $1.51 per pound of copper for the first six months of 2014. |
b. | Refer to summary operating data on page 4 for FCX's consolidated molybdenum sales, which includes sales of molybdenum produced at Cerro Verde. |
c. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIV, which is available on FCX's website, "fcx.com." |
Freeport-McMoRan | 7 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 205 | 122 | 359 | 262 | |||||||||||||
Sales | 196 | 117 | 351 | 226 | |||||||||||||
Average realized price per pound | $ | 2.61 | $ | 3.19 | $ | 2.66 | $ | 3.15 | |||||||||
Gold (thousands of recoverable ounces) | |||||||||||||||||
Production | 360 | 142 | 615 | 350 | |||||||||||||
Sales | 346 | 135 | 606 | 297 | |||||||||||||
Average realized price per ounce | $ | 1,173 | $ | 1,294 | $ | 1,183 | $ | 1,299 | |||||||||
Unit net cash costs per pound of coppera | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 2.26 | $ | 3.86 | b | $ | 2.51 | $ | 3.60 | b | |||||||
Gold and silver credits | (2.13 | ) | (1.57 | ) | (2.11 | ) | (1.85 | ) | |||||||||
Treatment charges | 0.32 | 0.26 | 0.31 | 0.25 | |||||||||||||
Export duties | 0.18 | — | 0.16 | — | |||||||||||||
Royalty on metals | 0.18 | c | 0.11 | 0.17 | c | 0.12 | |||||||||||
Unit net cash costs | $ | 0.81 | $ | 2.66 | $ | 1.04 | $ | 2.12 | |||||||||
Freeport-McMoRan | 8 |
a. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs," beginning on page XIV, which is available on FCX's website, "fcx.com." |
b. | The second quarter and first six months of 2014 excludes fixed costs totaling $0.48 per pound of copper charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates. |
c. | Includes $0.07 per pound of copper for the second quarter and first six months of 2015 associated with PT-FI's increased royalty rates pursuant to the MOU. |
Freeport-McMoRan | 9 |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Copper (millions of recoverable pounds) | |||||||||||||||||
Production | 115 | 114 | 231 | 223 | |||||||||||||
Sales | 104 | 118 | 237 | 202 | |||||||||||||
Average realized price per pounda | $ | 2.63 | $ | 3.08 | $ | 2.66 | $ | 3.08 | |||||||||
Cobalt (millions of contained pounds) | |||||||||||||||||
Production | 9 | 7 | 16 | 14 | |||||||||||||
Sales | 8 | 7 | 16 | 15 | |||||||||||||
Average realized price per pound | $ | 9.27 | $ | 9.58 | $ | 9.23 | $ | 9.29 | |||||||||
Unit net cash costs per pound of copperb | |||||||||||||||||
Site production and delivery, excluding adjustments | $ | 1.54 | $ | 1.46 | $ | 1.56 | $ | 1.47 | |||||||||
Cobalt creditsc | (0.53 | ) | (0.34 | ) | (0.44 | ) | (0.48 | ) | |||||||||
Royalty on metals | 0.06 | 0.06 | 0.06 | 0.07 | |||||||||||||
Unit net cash costs | $ | 1.07 | $ | 1.18 | $ | 1.18 | $ | 1.06 | |||||||||
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedules, "Product Revenues and Production Costs," beginning on page XIV, which is available on FCX's website, "fcx.com." |
c. | Net of cobalt downstream processing and freight costs. |
Freeport-McMoRan | 10 |
Freeport-McMoRan | 11 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014a | 2015 | 2014a | |||||||||||||
Financial Summary (in millions) | ||||||||||||||||
Realized revenuesb | $ | 656 | $ | 1,243 | $ | 1,203 | $ | 2,488 | ||||||||
Less: cash production costsb | 249 | 314 | 503 | 612 | ||||||||||||
Cash operating margin | $ | 407 | $ | 929 | $ | 700 | $ | 1,876 | ||||||||
Capital expenditures | $ | 777 | $ | 903 | $ | 1,795 | $ | 1,484 | ||||||||
Sales Volumes | ||||||||||||||||
Oil (MMBbls) | 8.6 | 11.7 | 17.0 | 23.5 | ||||||||||||
Natural gas (Bcf) | 23.5 | 20.3 | 45.3 | 39.8 | ||||||||||||
NGLs (MMBbls) | 0.6 | 1.0 | 1.1 | 2.1 | ||||||||||||
MMBOE | 13.1 | 16.0 | 25.6 | 32.2 | ||||||||||||
Average Realized Pricesb | ||||||||||||||||
Oil (per barrel) | $ | 67.61 | $ | 95.50 | $ | 62.13 | $ | 94.63 | ||||||||
Natural gas (per million British thermal units, or MMBtu) | $ | 2.66 | $ | 4.44 | $ | 2.75 | $ | 4.55 | ||||||||
NGLs (per barrel) | $ | 20.50 | $ | 38.79 | $ | 21.71 | $ | 42.35 | ||||||||
Cash Operating Margin per BOEb | ||||||||||||||||
Realized revenues | $ | 50.04 | $ | 77.53 | $ | 46.95 | $ | 77.37 | ||||||||
Less: cash production costs | 19.04 | 19.57 | 19.62 | 19.03 | ||||||||||||
Cash operating margin | $ | 31.00 | $ | 57.96 | $ | 27.33 | $ | 58.34 | ||||||||
a. | The 2014 periods include results from the Eagle Ford field through June 19, 2014. Eagle Ford had sales volumes totaling 4.0 MMBOE for second-quarter 2014 and 8.7 MMBOE for the first six months of 2014; excluding Eagle Ford, oil and gas cash production costs were $21.66 per BOE for second-quarter 2014 and $21.29 per BOE for the first six months of 2014. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts. For reconciliations of realized revenues (including average realized prices for oil, natural gas and NGLs) and cash production costs to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV, which is available on FCX's website, “fcx.com.” |
Freeport-McMoRan | 12 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
Sales Volumes (MBOE per day) | 2015 | 2014 | 2015 | 2014 | |||||||
GOMa | 80 | 75 | 77 | 73 | |||||||
California | 38 | 39 | 39 | 39 | |||||||
Haynesville/Madden/Other | 26 | 18 | 26 | 18 | |||||||
Eagle Fordb | — | 44 | — | 48 | |||||||
Total oil and gas operations | 144 | 176 | 142 | 178 | |||||||
a. | Includes sales from properties on the GOM Shelf and in the Deepwater GOM. |
b. | FM O&G completed the sale of Eagle Ford in June 2014. |
Freeport-McMoRan | 13 |
Freeport-McMoRan | 14 |
Freeport-McMoRan | 15 |
Cash at domestic companies | $ | 29 | ||
Cash at international operations | 437 | |||
Total consolidated cash and cash equivalents | 466 | |||
Less: noncontrolling interests' share | (119 | ) | ||
Cash, net of noncontrolling interests' share | 347 | |||
Less: withholding taxes and other | (19 | ) | ||
Net cash available | $ | 328 | ||
Weighted- | ||||||
Average | ||||||
Interest Rate | ||||||
FCX Senior Notes | $ | 11.9 | 3.8% | |||
FCX Term Loan | 3.0 | 1.9% | ||||
FM O&G Senior Notes | 2.6 | 6.6% | ||||
Cerro Verde Credit Facility | 1.3 | a | 2.1% | |||
Other FCX debt | 2.1 | b | 2.7% | |||
$ | 20.9 | 3.6% | ||||
a. | Cerro Verde had $1.3 billion of borrowings outstanding and no letters of credit issued under its $1.8 billion credit facility to fund a portion of its expansion project and for its general corporate purposes. |
b. | FCX had $985 million of borrowings outstanding and $42 million in letters of credit issued under its $4 billion revolving credit facility. FCX also has uncommitted and short-term lines of credit with certain financial institutions that are unsecured, which have terms and pricing that are generally more favorable than our revolving credit facility. At June 30, 2015, there was $410 million of borrowings drawn under these lines of credit. |
Freeport-McMoRan | 16 |
Freeport-McMoRan | 17 |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED MINING OPERATING DATA | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
Production | Sales | |||||||||||||
COPPER (millions of recoverable pounds) | 2015 | 2014 | 2015 | 2014 | ||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (85%)a | 219 | 153 | 225 | 164 | ||||||||||
Bagdad (100%) | 51 | 59 | 56 | 64 | ||||||||||
Safford (100%) | 39 | 34 | 40 | 38 | ||||||||||
Sierrita (100%) | 48 | 51 | 51 | 54 | ||||||||||
Miami (100%) | 12 | 15 | 12 | 16 | ||||||||||
Chino (100%) | 76 | 57 | 78 | 60 | ||||||||||
Tyrone (100%) | 23 | 24 | 23 | 25 | ||||||||||
Other (100%) | 1 | 2 | 1 | 2 | ||||||||||
Total North America | 469 | 395 | 486 | 423 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 104 | 125 | 97 | 138 | ||||||||||
El Abra (51%) | 84 | 93 | 81 | 92 | ||||||||||
Candelaria/Ojos del Salado (80%)b | — | 82 | — | 80 | ||||||||||
Total South America | 188 | 300 | 178 | 310 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (90.64%)c | 205 | 122 | 196 | 117 | ||||||||||
Africa | ||||||||||||||
Tenke Fungurume (56%) | 115 | 114 | 104 | 118 | ||||||||||
Consolidated | 977 | 931 | 964 | 968 | ||||||||||
Less noncontrolling interests | 160 | 182 | 149 | 188 | ||||||||||
Net | 817 | 749 | 815 | 780 | ||||||||||
Consolidated sales from mines | 964 | 968 | ||||||||||||
Purchased copper | 24 | 34 | ||||||||||||
Total copper sales, including purchases | 988 | 1,002 | ||||||||||||
Average realized price per pound | $ | 2.71 | $ | 3.16 | ||||||||||
GOLD (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 7 | 3 | 6 | 4 | ||||||||||
South America (80%)b | — | 21 | — | 20 | ||||||||||
Indonesia (90.64%)c | 360 | 142 | 346 | 135 | ||||||||||
Consolidated | 367 | 166 | 352 | 159 | ||||||||||
Less noncontrolling interests | 34 | 17 | 33 | 16 | ||||||||||
Net | 333 | 149 | 319 | 143 | ||||||||||
Average realized price per ounce | $ | 1,174 | $ | 1,296 | ||||||||||
MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 7 | 8 | N/A | N/A | ||||||||||
Climax (100%) | 6 | 6 | N/A | N/A | ||||||||||
North America copper mines (100%)a | 10 | 9 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 2 | 2 | N/A | N/A | ||||||||||
Consolidated | 25 | 25 | 23 | 25 | ||||||||||
Less noncontrolling interests | 1 | 1 | 1 | 1 | ||||||||||
Net | 24 | 24 | 22 | 24 | ||||||||||
Average realized price per pound | $ | 9.51 | $ | 13.43 | ||||||||||
COBALT (millions of contained pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Consolidated - Tenke Fungurume (56%) | 9 | 7 | 8 | 7 | ||||||||||
Less noncontrolling interests | 4 | 3 | 4 | 3 | ||||||||||
Net | 5 | 4 | 4 | 4 | ||||||||||
Average realized price per pound | $ | 9.27 | $ | 9.58 | ||||||||||
a. Amounts are net of Morenci's 15 percent joint venture partner's interest. | ||||||||||||||
b. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines. | ||||||||||||||
c. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED MINING OPERATING DATA (continued) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
Production | Sales | |||||||||||||
COPPER (millions of recoverable pounds) | 2015 | 2014 | 2015 | 2014 | ||||||||||
(FCX's net interest in %) | ||||||||||||||
North America | ||||||||||||||
Morenci (85%)a | 424 | 301 | 436 | 308 | ||||||||||
Bagdad (100%) | 104 | 117 | 114 | 120 | ||||||||||
Safford (100%) | 79 | 71 | 81 | 74 | ||||||||||
Sierrita (100%) | 95 | 101 | 100 | 100 | ||||||||||
Miami (100%) | 23 | 29 | 25 | 31 | ||||||||||
Chino (100%) | 149 | 110 | 153 | 109 | ||||||||||
Tyrone (100%) | 45 | 47 | 47 | 48 | ||||||||||
Other (100%) | 2 | 4 | 2 | 4 | ||||||||||
Total North America | 921 | 780 | 958 | 794 | ||||||||||
South America | ||||||||||||||
Cerro Verde (53.56%) | 211 | 260 | 207 | 261 | ||||||||||
El Abra (51%) | 170 | 185 | 171 | 182 | ||||||||||
Candelaria/Ojos del Salado (80%)b | — | 169 | — | 174 | ||||||||||
Total South America | 381 | 614 | 378 | 617 | ||||||||||
Indonesia | ||||||||||||||
Grasberg (90.64%)c | 359 | 262 | 351 | 226 | ||||||||||
Africa | ||||||||||||||
Tenke Fungurume (56%) | 231 | 223 | 237 | 202 | ||||||||||
Consolidated | 1,892 | 1,879 | 1,924 | 1,839 | ||||||||||
Less noncontrolling interests | 317 | 368 | 317 | 355 | ||||||||||
Net | 1,575 | 1,511 | 1,607 | 1,484 | ||||||||||
Consolidated sales from mines | 1,924 | 1,839 | ||||||||||||
Purchased copper | 64 | 66 | ||||||||||||
Total copper sales, including purchases | 1,988 | 1,905 | ||||||||||||
Average realized price per pound | $ | 2.70 | $ | 3.17 | ||||||||||
GOLD (thousands of recoverable ounces) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
North America (100%) | 11 | 5 | 9 | 6 | ||||||||||
South America (80%)b | — | 42 | — | 43 | ||||||||||
Indonesia (90.64%)c | 615 | 350 | 606 | 297 | ||||||||||
Consolidated | 626 | 397 | 615 | 346 | ||||||||||
Less noncontrolling interests | 58 | 41 | 57 | 36 | ||||||||||
Net | 568 | 356 | 558 | 310 | ||||||||||
Average realized price per ounce | $ | 1,183 | $ | 1,299 | ||||||||||
MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Henderson (100%) | 14 | 16 | N/A | N/A | ||||||||||
Climax (100%) | 12 | 11 | N/A | N/A | ||||||||||
North America copper mines (100%)a | 19 | 17 | N/A | N/A | ||||||||||
Cerro Verde (53.56%) | 4 | 5 | N/A | N/A | ||||||||||
Consolidated | 49 | 49 | 46 | 52 | ||||||||||
Less noncontrolling interests | 2 | 3 | 2 | 3 | ||||||||||
Net | 47 | 46 | 44 | 49 | ||||||||||
Average realized price per pound | $ | 9.84 | $ | 12.27 | ||||||||||
COBALT (millions of contained pounds) | ||||||||||||||
(FCX's net interest in %) | ||||||||||||||
Consolidated - Tenke Fungurume (56%) | 16 | 14 | 16 | 15 | ||||||||||
Less noncontrolling interests | 7 | 6 | 7 | 7 | ||||||||||
Net | 9 | 8 | 9 | 8 | ||||||||||
Average realized price per pound | $ | 9.23 | $ | 9.29 | ||||||||||
a. Amounts are net of Morenci's 15 percent joint venture partner's interest. | ||||||||||||||
b. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines. | ||||||||||||||
c. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement. | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||
SELECTED MINING OPERATING DATA (continued) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
100% North America Copper Mines | ||||||||||||
Solution Extraction/Electrowinning (SX/EW) Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 890,000 | 1,044,500 | 902,500 | 1,014,000 | ||||||||
Average copper ore grade (percent) | 0.26 | 0.25 | 0.25 | 0.25 | ||||||||
Copper production (millions of recoverable pounds) | 261 | 234 | 508 | 463 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 316,000 | 260,100 | 308,800 | 257,700 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 0.47 | 0.44 | 0.48 | 0.43 | ||||||||
Molybdenum | 0.03 | 0.03 | 0.03 | 0.03 | ||||||||
Copper recovery rate (percent) | 85.8 | 82.8 | 85.6 | 84.4 | ||||||||
Production (millions of recoverable pounds): | ||||||||||||
Copper | 247 | 188 | 488 | 370 | ||||||||
Molybdenum | 10 | 9 | 19 | 17 | ||||||||
100% South America Mininga | ||||||||||||
SX/EW Operations | ||||||||||||
Leach ore placed in stockpiles (metric tons per day) | 237,000 | 281,700 | 235,300 | 284,200 | ||||||||
Average copper ore grade (percent) | 0.41 | 0.52 | 0.41 | 0.51 | ||||||||
Copper production (millions of recoverable pounds) | 109 | 125 | 223 | 248 | ||||||||
Mill Operations | ||||||||||||
Ore milled (metric tons per day) | 116,500 | 182,200 | 117,900 | 185,500 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.46 | 0.56 | 0.45 | 0.58 | ||||||||
Molybdenum (percent) | 0.01 | 0.02 | 0.02 | 0.02 | ||||||||
Gold (grams per metric ton) | — | 0.11 | — | 0.11 | ||||||||
Copper recovery rate (percent) | 78.2 | 88.7 | 78.9 | 89.4 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 79 | 175 | 158 | 366 | ||||||||
Molybdenum (millions of pounds) | 2 | 2 | 4 | 5 | ||||||||
Gold (thousands of ounces) | — | 21 | — | 42 | ||||||||
100% Indonesia Mining | ||||||||||||
Ore milled (metric tons per day)b | ||||||||||||
Grasberg open pit | 134,200 | 50,700 | 121,200 | 58,200 | ||||||||
DOZ underground mine | 42,700 | 50,500 | 45,800 | 50,400 | ||||||||
Big Gossan underground mine | — | 1,700 | — | 1,800 | ||||||||
Total | 176,900 | 102,900 | 167,000 | 110,400 | ||||||||
Average ore grades: | ||||||||||||
Copper (percent) | 0.67 | 0.73 | 0.63 | 0.72 | ||||||||
Gold (grams per metric ton) | 0.86 | 0.65 | 0.78 | 0.72 | ||||||||
Recovery rates (percent): | ||||||||||||
Copper | 90.6 | 89.0 | 90.6 | 88.7 | ||||||||
Gold | 83.5 | 76.3 | 83.9 | 78.1 | ||||||||
Production (recoverable): | ||||||||||||
Copper (millions of pounds) | 205 | 125 | 359 | 269 | ||||||||
Gold (thousands of ounces) | 360 | 142 | 615 | 351 | ||||||||
100% Africa Mining | ||||||||||||
Ore milled (metric tons per day) | 15,300 | 15,200 | 14,900 | 14,800 | ||||||||
Average ore grades (percent): | ||||||||||||
Copper | 4.02 | 4.08 | 4.18 | 4.07 | ||||||||
Cobalt | 0.44 | 0.34 | 0.40 | 0.33 | ||||||||
Copper recovery rate (percent) | 93.9 | 92.7 | 93.9 | 93.7 | ||||||||
Production (millions of pounds): | ||||||||||||
Copper (recoverable) | 115 | 114 | 231 | 223 | ||||||||
Cobalt (contained) | 9 | 7 | 16 | 14 | ||||||||
100% Molybdenum Mines | ||||||||||||
Ore milled (metric tons per day) | 35,900 | 44,800 | 38,200 | 42,200 | ||||||||
Average molybdenum ore grade (percent) | 0.20 | 0.18 | 0.19 | 0.18 | ||||||||
Molybdenum production (millions of recoverable pounds) | 13 | 14 | 26 | 27 | ||||||||
a. On November 3, 2014, FCX completed the sale of its 80 percent interests in the Candelaria and Ojos del Salado mines. | ||||||||||||
b. Amounts represent the approximate average daily throughput processed at PT-FI's mill facilities from each producing mine. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED U.S. OIL AND GAS OPERATING DATA | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||
Sales Volumes | Sales per Day | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Gulf of Mexico (GOM)a | ||||||||||||||
Oil (thousand barrels or MBbls) | 5,234 | 5,262 | 58 | 58 | ||||||||||
Natural gas (million cubic feet or MMcf) | 9,279 | 6,669 | 102 | 73 | ||||||||||
Natural gas liquids (NGLs, in MBbls) | 529 | 489 | 5 | 5 | ||||||||||
Thousand barrels of oil equivalents (MBOE) | 7,309 | 6,862 | 80 | 75 | ||||||||||
Average realized price per BOEb | $ | 47.82 | $ | 87.49 | ||||||||||
Cash production costs per BOEb | $ | 16.98 | $ | 14.80 | ||||||||||
Capital expenditures (in millions) | $ | 676 | c | $ | 728 | c | ||||||||
CALIFORNIA | ||||||||||||||
Oil (MBbls) | 3,326 | 3,436 | 37 | 37 | ||||||||||
Natural gas (MMcf) | 562 | 597 | 6 | 7 | ||||||||||
NGLs (MBbls) | 42 | 42 | — | d | 1 | |||||||||
MBOE | 3,462 | 3,578 | 38 | 39 | ||||||||||
Average realized price per BOEb | $ | 48.30 | $ | 94.37 | ||||||||||
Cash production costs per BOEb | $ | 27.13 | $ | 37.70 | ||||||||||
Capital expenditures (in millions) | $ | 24 | $ | 68 | ||||||||||
HAYNESVILLE/MADDEN/OTHER | ||||||||||||||
Oil (MBbls) | 39 | 26 | — | d | — | d | ||||||||
Natural gas (MMcf) | 13,693 | 9,585 | 151 | 105 | ||||||||||
NGLs (MBbls) | 15 | 5 | — | d | — | d | ||||||||
MBOE | 2,336 | 1,629 | 26 | 18 | ||||||||||
Average realized price per BOEb | $ | 16.15 | $ | 27.59 | ||||||||||
Cash production costs per BOEb | $ | 13.55 | $ | 15.35 | ||||||||||
Capital expenditures (in millions) | $ | 6 | $ | 40 | ||||||||||
EAGLE FORDe | ||||||||||||||
Oil (MBbls) | — | 2,950 | — | 33 | ||||||||||
Natural gas (MMcf) | — | 3,452 | — | 38 | ||||||||||
NGLs (MBbls) | — | 433 | — | 5 | ||||||||||
MBOE | — | 3,959 | — | 44 | ||||||||||
Average realized price per BOEb | $ | — | $ | 81.52 | ||||||||||
Cash production costs per BOEb | $ | — | $ | 13.23 | ||||||||||
Capital expenditures (in millions) | $ | — | $ | 105 | ||||||||||
TOTAL U.S. OIL AND GAS OPERATIONS | ||||||||||||||
Oil (MBbls) | 8,599 | 11,674 | 95 | 128 | ||||||||||
Natural gas (MMcf) | 23,534 | 20,303 | 259 | 223 | ||||||||||
NGLs (MBbls) | 586 | 969 | 5 | 11 | ||||||||||
MBOE | 13,107 | 16,028 | 144 | 176 | ||||||||||
Cash operating margin per BOE:b | ||||||||||||||
Realized revenues | $ | 50.04 | $ | 77.53 | ||||||||||
Cash production costs | 19.04 | 19.57 | ||||||||||||
Cash operating margin | $ | 31.00 | $ | 57.96 | ||||||||||
Depreciation, depletion and amortization per BOE | $ | 36.99 | $ | 38.39 | ||||||||||
Capital expenditures (in millions) | $ | 777 | f | $ | 903 | f |
a. | Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts which are managed on a consolidated basis; accordingly, the average realized price per BOE by region does not reflect adjustments for derivative contracts. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV, which is available on FCX's website, “fcx.com.” |
c. | Includes $58 million in second-quarter 2015 and $174 million in second-quarter 2014 for the Inboard Lower Tertiary/Cretaceous natural gas trend. |
d. | Rounds to less than 1 MBbl per day. |
e. | FCX completed the sale of its Eagle Ford shale assets on June 20, 2014. |
f. | Consolidated capital expenditures for United States (U.S.) oil and gas operations reflect total spending, which include accrual and other adjustments totaling $71 million for second-quarter 2015 and $(38) million for second-quarter 2014 that are not specifically allocated to the above regions. |
FREEPORT-McMoRan INC. | ||||||||||||||
SELECTED OIL AND GAS OPERATING DATA (continued) | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
Sales Volumes | Sales per Day | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
GOMa | ||||||||||||||
Oil (MBbls) | 10,197 | 10,063 | 56 | 56 | ||||||||||
Natural gas (MMcf) | 16,634 | 12,576 | 92 | 70 | ||||||||||
NGLs (MBbls) | 1,001 | 1,004 | 6 | 6 | ||||||||||
MBOE | 13,970 | 13,163 | 77 | 73 | ||||||||||
Average realized price per BOEb | $ | 44.40 | $ | 87.42 | ||||||||||
Cash production costs per BOEb | $ | 17.17 | $ | 14.62 | ||||||||||
Capital expenditures (in millions) | $ | 1,381 | c | $ | 1,131 | c | ||||||||
CALIFORNIA | ||||||||||||||
Oil (MBbls) | 6,700 | 6,855 | 37 | 38 | ||||||||||
Natural gas (MMcf) | 1,146 | 1,145 | 6 | 6 | ||||||||||
NGLs (MBbls) | 84 | 83 | — | d | — | d | ||||||||
MBOE | 6,975 | 7,129 | 39 | 39 | ||||||||||
Average realized price per BOEb | $ | 43.49 | $ | 93.07 | ||||||||||
Cash production costs per BOEb | $ | 29.43 | $ | 37.12 | ||||||||||
Capital expenditures (in millions) | $ | 53 | $ | 121 | ||||||||||
HAYNESVILLE/MADDEN/OTHER | ||||||||||||||
Oil (MBbls) | 74 | 54 | 1 | — | d | |||||||||
Natural gas (MMcf) | 27,521 | 18,651 | 152 | 103 | ||||||||||
NGLs (MBbls) | 25 | 11 | — | d | — | d | ||||||||
MBOE | 4,686 | 3,174 | 26 | 18 | ||||||||||
Average realized price per BOEb | $ | 16.66 | $ | 28.93 | ||||||||||
Cash production costs per BOEb | $ | 12.42 | $ | 13.40 | ||||||||||
Capital expenditures (in millions) | $ | 27 | $ | 67 | ||||||||||
EAGLE FORDe | ||||||||||||||
Oil (MBbls) | — | 6,481 | — | 36 | ||||||||||
Natural gas (MMcf) | — | 7,410 | — | 41 | ||||||||||
NGLs (MBbls) | — | 978 | — | 5 | ||||||||||
MBOE | — | 8,694 | — | 48 | ||||||||||
Average realized price per BOEb | $ | — | $ | 81.66 | ||||||||||
Cash production costs per BOEb | $ | — | $ | 12.97 | ||||||||||
Capital expenditures (in millions) | $ | — | $ | 232 | ||||||||||
TOTAL U.S. OIL AND GAS OPERATIONS | ||||||||||||||
Oil (MBbls) | 16,971 | 23,453 | 94 | 130 | ||||||||||
Natural gas (MMcf) | 45,301 | 39,782 | 250 | 220 | ||||||||||
NGLs (MBbls) | 1,110 | 2,076 | 6 | 11 | ||||||||||
MBOE | 25,631 | 32,160 | 142 | 178 | ||||||||||
Cash operating margin per BOE:b | ||||||||||||||
Realized revenue | $ | 46.95 | $ | 77.37 | ||||||||||
Cash production costs | 19.62 | 19.03 | ||||||||||||
Cash operating margin | $ | 27.33 | $ | 58.34 | ||||||||||
Depreciation, depletion and amortization per BOE | $ | 39.59 | $ | 38.30 | ||||||||||
Capital expenditures (in millions) | $ | 1,795 | f | $ | 1,484 | f | ||||||||
a. | Reflects properties in the Deepwater GOM and on the Shelf, including the Inboard Lower Tertiary/Cretaceous natural gas trend. |
b. | Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts which are managed on a consolidated basis; accordingly, the average realized price per BOE by region does not reflect adjustments for derivative contracts. For reconciliations of average realized price and cash production costs per BOE to revenues and production and delivery costs reported in FCX's consolidated financial statements, refer to the supplemental schedules, “Product Revenues and Production Costs,” beginning on page XIV, which is available on FCX's website, “fcx.com.” |
c. | Includes $142 million for the first six months of 2015 and $300 million for the first six months of 2014 for the Inboard Lower Tertiary/Cretaceous natural gas trend. |
d. | Rounds to less than 1 MBbl per day. |
e. | FCX completed the sale of its Eagle Ford shale assets on June 20, 2014. |
f. | Consolidated capital expenditures for U.S. oil and gas operations reflect total spending, which include accrual and other adjustments totaling $334 million for the first six months of 2015 and $(67) million for the first six months of 2014 that are not specifically allocated to the above regions. |
FREEPORT-McMoRan INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Revenues | $ | 4,248 | a,b | $ | 5,522 | a,b | $ | 8,401 | a,b | $ | 10,507 | a,b | ||||
Cost of sales: | ||||||||||||||||
Production and delivery | 2,848 | c,d | 3,082 | e | 5,760 | c,d | 5,819 | e | ||||||||
Depreciation, depletion and amortization | 890 | 1,013 | 1,829 | 1,979 | ||||||||||||
Impairment of oil and gas properties | 2,686 | — | 5,790 | — | ||||||||||||
Total cost of sales | 6,424 | 4,095 | 13,379 | 7,798 | ||||||||||||
Selling, general and administrative expenses | 151 | 164 | 305 | 299 | ||||||||||||
Mining exploration and research expenses | 36 | 34 | 69 | 64 | ||||||||||||
Environmental obligations and shutdown costs | 11 | 76 | 24 | 82 | ||||||||||||
Net gain on sale of assets | — | — | (39 | ) | — | |||||||||||
Total costs and expenses | 6,622 | 4,369 | 13,738 | 8,243 | ||||||||||||
Operating (loss) income | (2,374 | ) | 1,153 | (5,337 | ) | 2,264 | ||||||||||
Interest expense, net | (149 | ) | f | (164 | ) | f | (295 | ) | f | (325 | ) | f | ||||
Insurance and other third-party recoveries | 92 | — | 92 | — | ||||||||||||
Net gain on early extinguishment of debt | — | 5 | — | 5 | ||||||||||||
Other (expense) income, net | (55 | ) | (8 | ) | (48 | ) | 25 | |||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings | (2,486 | ) | 986 | (5,588 | ) | 1,969 | ||||||||||
Benefit from (provision for) income taxes | 687 | g | (328 | ) | g | 1,382 | g | (685 | ) | g | ||||||
Equity in affiliated companies' net earnings | — | 2 | 1 | 2 | ||||||||||||
Net (loss) income | (1,799 | ) | 660 | (4,205 | ) | 1,286 | ||||||||||
Net income attributable to noncontrolling interests | (42 | ) | (168 | ) | (100 | ) | (274 | ) | ||||||||
Preferred dividends attributable to redeemable noncontrolling interest | (10 | ) | (10 | ) | (20 | ) | (20 | ) | ||||||||
Net (loss) income attributable to common stockholders | $ | (1,851 | ) | h | $ | 482 | h | $ | (4,325 | ) | h | $ | 992 | h | ||
Net (loss) income per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | (1.78 | ) | $ | 0.46 | $ | (4.16 | ) | $ | 0.95 | ||||||
Diluted | $ | (1.78 | ) | $ | 0.46 | $ | (4.16 | ) | $ | 0.95 | ||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 1,040 | 1,039 | 1,040 | 1,039 | ||||||||||||
Diluted | 1,040 | 1,045 | 1,040 | 1,045 | ||||||||||||
Dividends declared per share of common stock | $ | 0.1605 | $ | 0.3125 | $ | 0.2105 | $ | 0.6250 |
a. | Includes (unfavorable) favorable adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling $(20) million ($(10) million to net loss attributable to common stock) for second-quarter 2015, $35 million ($16 million to net income attributable to common stock) for second-quarter 2014, $(106) million ($(50) million to net loss attributable to common stock) for the first six months of 2015 and $(118) million ($(65) million to net income attributable to common stock) for the first six months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page X. |
b. | Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling $(95) million ($(59) million to net loss attributable to common stock) for second-quarter 2015, $(7) million ($(4) million to net income attributable to common stock) for second-quarter 2014, $(143) million ($(89) million to net loss attributable to common stock) for the first six months of 2015 and $8 million ($5 million to net income attributable to common stock) for the first six months of 2014. For further discussion, refer to the supplemental schedule, "Derivative Instruments," beginning on page X. |
c. | Includes charges totaling $59 million ($38 million to net loss attributable to common stock) for second-quarter 2015 and $63 million ($41 million to net loss attributable to common stock) for the first six months of 2015 for lower of cost or market (LCM) adjustments primarily attributable to molybdenum inventories. |
d. | Includes net charges of $22 million ($14 million to net loss attributable to common stock) for second-quarter 2015 and $39 million ($24 million to net loss attributable to common stock) for the first six months of 2015 for idle/terminated rig costs and inventory write-downs at oil and gas operations. |
e. | Includes $56 million ($30 million to net income attributable to common stock) for second-quarter 2014 and $109 million ($58 million to net income attributable to common stock) for the first six months of 2014 for fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT Freeport Indonesia's (PT-FI) operating rates. |
f. | Consolidated interest expense, excluding capitalized interest, totaled $215 million in second-quarter 2015, $225 million in second-quarter 2014, $425 million for the first six months of 2015 and $449 million for the first six months of 2014. |
g. | As a result of the impairment to oil and gas properties, FCX recorded tax charges of $305 million for second-quarter 2015 and $763 million for the first six months of 2015 to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits. The second-quarter and first six months of 2014 include a charge of $58 million related to deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. For a summary of the benefit from (provision for) income taxes, refer to the supplementary schedule, "Income Taxes," on page IX. |
h. | FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net additions to net income attributable to common stock of $13 million in second-quarter 2015, $41 million in second-quarter 2014, $37 million for the first six months of 2015 and $56 million for the first six months of 2014. For further discussion, refer to the supplemental schedule, "Deferred Profits," on page XI. |
FREEPORT-McMoRan INC. | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
June 30, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 466 | $ | 464 | ||||
Trade accounts receivable | 949 | 953 | ||||||
Other accounts receivables | 1,323 | 1,610 | ||||||
Inventories: | ||||||||
Materials and supplies, net | 2,014 | 1,886 | ||||||
Mill and leach stockpiles | 1,933 | 1,914 | ||||||
Product | 1,484 | 1,561 | ||||||
Other current assets | 528 | 657 | ||||||
Total current assets | 8,697 | 9,045 | ||||||
Property, plant, equipment and mining development costs, net | 27,095 | 26,220 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization, less accumulated amortization | 4,649 | 9,187 | ||||||
Not subject to amortization | 9,312 | 10,087 | ||||||
Long-term mill and leach stockpiles | 2,277 | 2,179 | ||||||
Other assets | 1,978 | 1,956 | ||||||
Total assets | $ | 54,008 | $ | 58,674 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 3,376 | $ | 3,653 | ||||
Current portion of debt | 791 | 478 | ||||||
Current portion of environmental and asset retirement obligations | 330 | 296 | ||||||
Dividends payable | 175 | 335 | ||||||
Accrued income taxes | 67 | 410 | ||||||
Total current liabilities | 4,739 | 5,172 | ||||||
Long-term debt, less current portion | 20,111 | 18,371 | ||||||
Deferred income taxes | 4,870 | 6,398 | ||||||
Environmental and asset retirement obligations, less current portion | 3,716 | 3,647 | ||||||
Other liabilities | 1,760 | 1,861 | ||||||
Total liabilities | 35,196 | 35,449 | ||||||
Redeemable noncontrolling interest | 757 | 751 | ||||||
Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock | 117 | 117 | ||||||
Capital in excess of par value | 22,330 | 22,281 | ||||||
(Accumulated deficit) retained earnings | (4,417 | ) | 128 | |||||
Accumulated other comprehensive loss | (523 | ) | (544 | ) | ||||
Common stock held in treasury | (3,702 | ) | (3,695 | ) | ||||
Total stockholders' equity | 13,805 | 18,287 | ||||||
Noncontrolling interests | 4,250 | 4,187 | ||||||
Total equity | 18,055 | 22,474 | ||||||
Total liabilities and equity | $ | 54,008 | $ | 58,674 | ||||
FREEPORT-McMoRan INC. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Cash flow from operating activities: | |||||||||
Net (loss) income | $ | (4,205 | ) | $ | 1,286 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||
Depreciation, depletion and amortization | 1,829 | 1,979 | |||||||
Impairment of oil and gas properties | 5,790 | — | |||||||
LCM inventory adjustments | 63 | — | |||||||
Net gain on sale of assets | (39 | ) | — | ||||||
Net (gains) losses on crude oil and natural gas derivative contracts | (58 | ) | 120 | ||||||
Net charges for environmental and asset retirement obligations, including accretion | 109 | 97 | |||||||
Payments for environmental and asset retirement obligations | (81 | ) | (96 | ) | |||||
Net gain on early extinguishment of debt | — | (5 | ) | ||||||
Deferred income taxes | (1,432 | ) | 37 | ||||||
Increase in long-term mill and leach stockpiles | (104 | ) | (131 | ) | |||||
Other, net | 104 | 77 | |||||||
Changes in working capital and other tax payments, excluding amounts from acquisitions and dispositions: | |||||||||
Accounts receivable | 493 | (243 | ) | ||||||
Inventories | 8 | (230 | ) | ||||||
Other current assets | (1 | ) | 35 | ||||||
Accounts payable and accrued liabilities | (205 | ) | (186 | ) | |||||
Accrued income taxes and changes in other tax payments | (485 | ) | (153 | ) | |||||
Net cash provided by operating activities | 1,786 | 2,587 | |||||||
Cash flow from investing activities: | |||||||||
Capital expenditures: | |||||||||
North America copper mines | (214 | ) | (627 | ) | |||||
South America | (902 | ) | (839 | ) | |||||
Indonesia | (438 | ) | (479 | ) | |||||
Africa | (97 | ) | (60 | ) | |||||
Molybdenum mines | (7 | ) | (33 | ) | |||||
U.S. oil and gas operations | (1,795 | ) | (1,484 | ) | |||||
Other | (75 | ) | (40 | ) | |||||
Acquisition of Deepwater Gulf of Mexico interests | — | (925 | ) | ||||||
Net proceeds from sale of Eagle Ford shale assets | — | 3,009 | |||||||
Other, net | 136 | (363 | ) | ||||||
Net cash used in investing activities | (3,392 | ) | (1,841 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from debt | 4,422 | 1,248 | |||||||
Repayments of debt | (2,360 | ) | (1,611 | ) | |||||
Cash dividends and distributions paid: | |||||||||
Common stock | (380 | ) | (653 | ) | |||||
Noncontrolling interests | (60 | ) | (250 | ) | |||||
Stock-based awards net (payments) proceeds, including excess tax benefit | (7 | ) | 3 | ||||||
Debt financing costs and other, net | (7 | ) | (10 | ) | |||||
Net cash provided by (used in) financing activities | 1,608 | (1,273 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 2 | (527 | ) | ||||||
Cash and cash equivalents at beginning of year | 464 | 1,985 | |||||||
Cash and cash equivalents at end of period | $ | 466 | $ | 1,458 | |||||
Three Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | (Provision) | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | Benefit | |||||||||||||||
U.S. | $ | (167 | ) | b | 97% | $ | 162 | $ | 463 | 33% | $ | (155 | ) | c | ||||||
South America | 21 | 29% | (6 | ) | 403 | 35% | (140 | ) | ||||||||||||
Indonesia | 228 | 42% | (95 | ) | (83 | ) | 40% | 33 | ||||||||||||
Africa | 59 | 46% | (27 | ) | 107 | 31% | (33 | ) | ||||||||||||
Impairment of oil and gas properties | (2,686 | ) | 38% | 1,016 | — | N/A | — | |||||||||||||
Valuation allowance | — | N/A | (305 | ) | d | — | N/A | — | ||||||||||||
Eliminations and other | 59 | N/A | (1 | ) | 96 | N/A | (26 | ) | ||||||||||||
Annualized rate adjustmente | — | N/A | (57 | ) | — | N/A | (7 | ) | ||||||||||||
Consolidated FCX | $ | (2,486 | ) | 28% | $ | 687 | $ | 986 | 33% | $ | (328 | ) | ||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Income Tax | Income Tax | |||||||||||||||||||
Income | Effective | Benefit | Income | Effective | (Provision) | |||||||||||||||
(Loss)a | Tax Rate | (Provision) | (Loss)a | Tax Rate | Benefit | |||||||||||||||
U.S. | $ | (469 | ) | b | 61% | $ | 288 | $ | 936 | 31% | $ | (291 | ) | c | ||||||
South America | 81 | 37% | (30 | ) | 747 | 36% | (267 | ) | ||||||||||||
Indonesia | 289 | 43% | (124 | ) | (39 | ) | 38% | 15 | ||||||||||||
Africa | 114 | 46% | (53 | ) | 187 | 30% | (57 | ) | ||||||||||||
Impairment of oil and gas properties | (5,790 | ) | 38% | 2,179 | — | N/A | — | |||||||||||||
Valuation allowance | — | N/A | (763 | ) | d | — | N/A | — | ||||||||||||
Eliminations and other | 187 | N/A | (28 | ) | 138 | N/A | (37 | ) | ||||||||||||
Annualized rate adjustmente | — | N/A | (87 | ) | — | N/A | (48 | ) | ||||||||||||
Consolidated FCX | $ | (5,588 | ) | 25% | f | $ | 1,382 | $ | 1,969 | 35% | $ | (685 | ) |
a. | Represents (loss) income by geographic location before income taxes and equity in affiliated companies' net earnings. |
b. | Includes a gain of $92 million related to net proceeds received from insurance carriers and other third parties related to a shareholder derivative litigation settlement for which there is no related tax provision. |
c. | Includes a $58 million charge for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford. |
d. | As a result of the impairment to oil and gas properties, FCX recorded tax charges to establish a valuation allowance primarily against U.S. federal alternative minimum tax credits. |
e. | In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its estimated annualized tax rate. |
f. | FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which it operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $2.50 per pound for copper, $1,150 per ounce for gold, $6 per pound for molybdenum and $56 per barrel of Brent crude oil for the second half of 2015 and excluding the impact of special items, FCX estimates no tax provision for 2015. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | (20 | ) | $ | 35 | $ | (106 | ) | $ | (118 | ) | ||||
Net income attributable to common stock | $ | (10 | ) | $ | 16 | $ | (50 | ) | $ | (65 | ) | ||||
Net income per share of common stock | $ | (0.01 | ) | $ | 0.01 | $ | (0.05 | ) | $ | (0.06 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | (95 | ) | $ | (7 | ) | $ | (143 | ) | $ | 8 | ||||
Net income attributable to common stock | $ | (59 | ) | $ | (4 | ) | $ | (89 | ) | $ | 5 | ||||
Net income per share of common stock | $ | (0.06 | ) | $ | — | $ | (0.09 | ) | $ | — |
10% Increase | 10% Decrease | ||||||
Crude oil options | $ | (37 | ) | $ | 18 | ||
(In millions) | Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Minesa | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operationsb | nations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 180 | $ | 92 | $ | 272 | $ | 195 | $ | 221 | $ | 416 | $ | 792 | c | $ | 310 | $ | — | $ | 1,089 | $ | 495 | $ | 305 | d | $ | 3,679 | $ | 569 | e | $ | — | $ | 4,248 | ||||||||||||||||||||||||||||
Intersegment | 427 | 706 | 1,133 | 37 | — | 37 | (2 | ) | f | 41 | 102 | 8 | 5 | (1,324 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 386 | 576 | g | 962 | 165 | 150 | 315 | 455 | 190 | 84 | g | 1,088 | 468 | (997 | ) | g | 2,565 | 281 | 2 | 2,848 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 55 | 84 | 139 | 40 | 32 | 72 | 78 | 57 | 25 | 3 | 9 | 19 | 402 | 485 | 3 | 890 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,686 | — | 2,686 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | — | 2 | 2 | — | 1 | 1 | 25 | 3 | — | — | 4 | 5 | 40 | 49 | 62 | 151 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 2 | 2 | — | — | — | — | — | — | — | — | 34 | 36 | — | — | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | — | 11 | 11 | — | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 166 | 134 | 300 | 27 | 38 | 65 | 232 | 101 | (7 | ) | 6 | 19 | (91 | ) | 625 | (2,932 | ) | (67 | ) | (2,374 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | — | 1 | 1 | — | — | — | — | — | — | — | 2 | 39 | 42 | 41 | 66 | 149 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | (5 | ) | 11 | 6 | 95 | 27 | — | — | — | — | 128 | — | (815 | ) | (687 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total assets at June 30, 2015 | 3,806 | 5,582 | 9,388 | 8,567 | 1,935 | 10,502 | 8,959 | 5,125 | 2,052 | 286 | 786 | 1,336 | 38,434 | 15,393 | 181 | 54,008 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 79 | 28 | 107 | 444 | 13 | 457 | 213 | 58 | 4 | — | 4 | 11 | 854 | 777 | 30 | 1,661 | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 52 | $ | 55 | $ | 107 | $ | 421 | $ | 524 | $ | 945 | $ | 523 | c | $ | 386 | $ | — | $ | 1,234 | $ | 623 | $ | 468 | d | $ | 4,286 | $ | 1,236 | e | $ | — | $ | 5,522 | ||||||||||||||||||||||||||||
Intersegment | 474 | 888 | 1,362 | 23 | 63 | 86 | — | 32 | 170 | 8 | 6 | (1,664 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 312 | 558 | 870 | 195 | 335 | 530 | 511 | 198 | 81 | 1,233 | 618 | (1,287 | ) | 2,754 | 329 | (1 | ) | 3,082 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 43 | 85 | 128 | 43 | 52 | 95 | 54 | 63 | 24 | 3 | 10 | 17 | 394 | 616 | 3 | 1,013 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | — | 1 | 1 | 1 | 2 | 25 | 3 | — | — | 5 | 6 | 42 | 59 | 63 | 164 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 2 | 2 | — | — | — | — | — | — | — | — | 32 | 34 | — | — | 34 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | — | 76 | 76 | — | — | 76 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 170 | 298 | 468 | 205 | 199 | 404 | (67 | ) | 154 | 65 | 6 | (4 | ) | (40 | ) | 986 | 232 | (65 | ) | 1,153 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | — | 1 | 1 | — | — | — | — | — | — | — | 3 | 18 | 22 | 74 | 68 | 164 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 73 | 67 | 140 | (33 | ) | 33 | — | — | — | — | 140 | — | 188 | 328 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at June 30, 2014 | 3,675 | 5,822 | 9,497 | 6,876 | 3,791 | 10,667 | 7,972 | 4,952 | 2,095 | 299 | 882 | 1,127 | 37,491 | 25,293 | 1,119 | 63,903 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 289 | 35 | 324 | 391 | 25 | 416 | 243 | 29 | 14 | 1 | 5 | 17 | 1,049 | 903 | (2 | ) | 1,950 |
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Minesa | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operationsb | nations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 286 | $ | 207 | $ | 493 | $ | 443 | $ | 452 | $ | 895 | $ | 1,413 | c | $ | 692 | $ | — | $ | 2,151 | $ | 1,035 | $ | 653 | d | $ | 7,332 | $ | 1,069 | e | $ | — | $ | 8,401 | ||||||||||||||||||||||||||||
Intersegment | 877 | 1,370 | 2,247 | 51 | (7 | ) | f | 44 | (16 | ) | f | 69 | 215 | 15 | 11 | (2,585 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 760 | 1,145 | g | 1,905 | 363 | 297 | 660 | 894 | 425 | 167 | g | 2,151 | 987 | (1,998 | ) | g | 5,191 | 564 | 5 | 5,760 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 106 | 166 | 272 | 77 | 70 | 147 | 148 | 130 | 51 | 5 | 19 | 35 | 807 | 1,015 | 7 | 1,829 | |||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 5,790 | — | 5,790 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 2 | 3 | 1 | 1 | 2 | 50 | 6 | — | — | 9 | 11 | 81 | 103 | 121 | 305 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 5 | 5 | — | — | — | — | — | — | — | — | 64 | 69 | — | — | 69 | |||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | — | 24 | 24 | — | — | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (39 | ) | (39 | ) | — | — | — | — | — | — | — | — | — | (39 | ) | — | — | (39 | ) | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 296 | 298 | 594 | 53 | 77 | 130 | 305 | 200 | (3 | ) | 10 | 31 | (68 | ) | 1,199 | (6,403 | ) | (133 | ) | (5,337 | ) | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | 1 | 2 | 1 | — | 1 | — | — | — | — | 5 | 79 | 87 | 78 | 130 | 295 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | — | 30 | 30 | 124 | 53 | — | — | — | — | 207 | — | (1,589 | ) | (1,382 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 163 | 51 | 214 | 875 | 27 | 902 | 438 | 97 | 7 | 1 | 8 | 27 | 1,694 | 1,795 | 39 | 3,528 | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 75 | $ | 116 | $ | 191 | $ | 701 | $ | 946 | $ | 1,647 | $ | 985 | c | $ | 692 | $ | — | $ | 2,380 | $ | 1,211 | $ | 904 | d | $ | 8,010 | $ | 2,497 | e | $ | — | $ | 10,507 | ||||||||||||||||||||||||||||
Intersegment | 918 | 1,646 | 2,564 | 87 | 195 | 282 | 8 | 53 | 296 | 16 | 11 | (3,230 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 595 | 1,061 | 1,656 | 360 | 646 | 1,006 | 894 | 350 | 157 | 2,381 | 1,206 | (2,470 | ) | 5,180 | 640 | (1 | ) | 5,819 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 77 | 158 | 235 | 79 | 103 | 182 | 102 | 114 | 46 | 5 | 20 | 36 | 740 | 1,232 | 7 | 1,979 | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1 | 1 | 2 | 2 | 2 | 4 | 46 | 6 | — | — | 9 | 13 | 80 | 116 | 103 | 299 | |||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 4 | 4 | — | — | — | — | — | — | — | 60 | 64 | — | — | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | — | — | — | — | — | — | — | — | — | — | 82 | 82 | — | — | 82 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 320 | 538 | 858 | 347 | 390 | 737 | (49 | ) | 275 | 93 | 10 | (13 | ) | (47 | ) | 1,864 | 509 | (109 | ) | 2,264 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | 1 | 2 | — | — | — | — | — | — | — | 7 | 36 | 45 | 150 | 130 | 325 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 130 | 137 | 267 | (15 | ) | 57 | — | — | — | — | 309 | — | 376 | 685 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 533 | 94 | 627 | 791 | 48 | 839 | 479 | 60 | 33 | 2 | 6 | 27 | 2,073 | 1,484 | 5 | 3,562 |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 1,341 | $ | 1,341 | $ | 80 | $ | 28 | $ | 1,449 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 862 | 804 | 64 | 22 | 890 | ||||||||||||||||
By-product credits | (80 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 60 | 58 | — | 2 | 60 | ||||||||||||||||
Net cash costs | 842 | 862 | 64 | 24 | 950 | ||||||||||||||||
Depreciation, depletion and amortization | 137 | 129 | 5 | 3 | 137 | ||||||||||||||||
Noncash and other costs, net | 46 | c | 45 | 1 | — | 46 | |||||||||||||||
Total costs | 1,025 | 1,036 | 70 | 27 | 1,133 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (13 | ) | (13 | ) | — | — | (13 | ) | |||||||||||||
Gross profit | $ | 303 | $ | 292 | $ | 10 | $ | 1 | $ | 303 | |||||||||||
Copper sales (millions of recoverable pounds) | 485 | 485 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 10 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.77 | $ | 2.77 | $ | 7.80 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.78 | 1.66 | 6.24 | ||||||||||||||||||
By-product credits | (0.16 | ) | — | — | |||||||||||||||||
Treatment charges | 0.12 | 0.12 | — | ||||||||||||||||||
Unit net cash costs | 1.74 | 1.78 | 6.24 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.28 | 0.27 | 0.53 | ||||||||||||||||||
Noncash and other costs, net | 0.10 | c | 0.09 | 0.06 | |||||||||||||||||
Total unit costs | 2.12 | 2.14 | 6.83 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.03 | ) | (0.03 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.62 | $ | 0.60 | $ | 0.97 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 1,449 | $ | 890 | $ | 137 | |||||||||||||||
Treatment charges | — | 60 | — | ||||||||||||||||||
Noncash and other costs, net | — | 46 | c | — | |||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (13 | ) | — | — | |||||||||||||||||
Eliminations and other | (31 | ) | (34 | ) | 2 | ||||||||||||||||
North America copper mines | 1,405 | 962 | 139 | ||||||||||||||||||
Other mining & eliminationsd | 2,274 | 1,603 | 263 | ||||||||||||||||||
Total mining | 3,679 | 2,565 | 402 | ||||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | e | |||||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | e |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Includes charges totaling $11 million ($0.02 per pound) for LCM inventory adjustments. |
d. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page XI. |
e. | Includes impairment of oil and gas properties of $2.7 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 1,332 | $ | 1,332 | $ | 112 | $ | 30 | $ | 1,474 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 786 | 733 | 60 | 19 | 812 | ||||||||||||||||
By-product credits | (116 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 46 | 45 | — | 1 | 46 | ||||||||||||||||
Net cash costs | 716 | 778 | 60 | 20 | 858 | ||||||||||||||||
Depreciation, depletion and amortization | 125 | 117 | 6 | 2 | 125 | ||||||||||||||||
Noncash and other costs, net | 29 | 29 | — | — | 29 | ||||||||||||||||
Total costs | 870 | 924 | 66 | 22 | 1,012 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | 9 | 9 | — | — | 9 | ||||||||||||||||
Gross profit | $ | 471 | $ | 417 | $ | 46 | $ | 8 | $ | 471 | |||||||||||
Copper sales (millions of recoverable pounds) | 421 | 421 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 9 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 3.16 | $ | 3.16 | $ | 12.49 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.87 | 1.74 | 6.73 | ||||||||||||||||||
By-product credits | (0.28 | ) | — | — | |||||||||||||||||
Treatment charges | 0.11 | 0.11 | — | ||||||||||||||||||
Unit net cash costs | 1.70 | 1.85 | 6.73 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.30 | 0.28 | 0.64 | ||||||||||||||||||
Noncash and other costs, net | 0.07 | 0.06 | 0.05 | ||||||||||||||||||
Total unit costs | 2.07 | 2.19 | 7.42 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | 0.02 | 0.02 | — | ||||||||||||||||||
Gross profit per pound | $ | 1.11 | $ | 0.99 | $ | 5.07 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 1,474 | $ | 812 | $ | 125 | |||||||||||||||
Treatment charges | — | 46 | — | ||||||||||||||||||
Noncash and other costs, net | — | 29 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | 9 | — | — | ||||||||||||||||||
Eliminations and other | (14 | ) | (17 | ) | 3 | ||||||||||||||||
North America copper mines | 1,469 | 870 | 128 | ||||||||||||||||||
Other mining & eliminationsc | 2,817 | 1,884 | 266 | ||||||||||||||||||
Total mining | 4,286 | 2,754 | 394 | ||||||||||||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | ||||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page XI. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 2,612 | $ | 2,612 | $ | 162 | $ | 54 | $ | 2,828 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1,715 | 1,605 | 122 | 41 | 1,768 | ||||||||||||||||
By-product credits | (163 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 121 | 118 | — | 3 | 121 | ||||||||||||||||
Net cash costs | 1,673 | 1,723 | 122 | 44 | 1,889 | ||||||||||||||||
Depreciation, depletion and amortization | 270 | 254 | 11 | 5 | 270 | ||||||||||||||||
Noncash and other costs, net | 77 | c | 76 | 1 | — | 77 | |||||||||||||||
Total costs | 2,020 | 2,053 | 134 | 49 | 2,236 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (28 | ) | (28 | ) | — | — | (28 | ) | |||||||||||||
Gross profit | $ | 564 | $ | 531 | $ | 28 | $ | 5 | $ | 564 | |||||||||||
Copper sales (millions of recoverable pounds) | 956 | 956 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 19 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 2.73 | $ | 2.73 | $ | 8.28 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.79 | 1.68 | 6.24 | ||||||||||||||||||
By-product credits | (0.17 | ) | — | — | |||||||||||||||||
Treatment charges | 0.13 | 0.12 | — | ||||||||||||||||||
Unit net cash costs | 1.75 | 1.80 | 6.24 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.28 | 0.27 | 0.58 | ||||||||||||||||||
Noncash and other costs, net | 0.08 | c | 0.08 | 0.06 | |||||||||||||||||
Total unit costs | 2.11 | 2.15 | 6.88 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.03 | ) | (0.03 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 0.59 | $ | 0.55 | $ | 1.40 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 2,828 | $ | 1,768 | $ | 270 | |||||||||||||||
Treatment charges | — | 121 | — | ||||||||||||||||||
Noncash and other costs, net | — | 77 | c | — | |||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (28 | ) | — | — | |||||||||||||||||
Eliminations and other | (60 | ) | (61 | ) | 2 | ||||||||||||||||
North America copper mines | 2,740 | 1,905 | 272 | ||||||||||||||||||
Other mining & eliminationsd | 4,592 | 3,286 | 535 | ||||||||||||||||||
Total mining | 7,332 | 5,191 | 807 | ||||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | e | |||||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | e |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Includes charges totaling $11 million ($0.01 per pound) for LCM inventory adjustments. |
d. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page XI. |
e. | Includes impairment of oil and gas properties of $5.8 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||||
North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||||
(In millions) | Method | Copper | Molybdenuma | Otherb | Total | ||||||||||||||||
Revenues, excluding adjustments | $ | 2,535 | $ | 2,535 | $ | 194 | $ | 59 | $ | 2,788 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1,481 | 1,388 | 110 | 38 | 1,536 | ||||||||||||||||
By-product credits | (198 | ) | — | — | — | — | |||||||||||||||
Treatment charges | 93 | 91 | — | 2 | 93 | ||||||||||||||||
Net cash costs | 1,376 | 1,479 | 110 | 40 | 1,629 | ||||||||||||||||
Depreciation, depletion and amortization | 229 | 217 | 10 | 2 | 229 | ||||||||||||||||
Noncash and other costs, net | 59 | 58 | — | 1 | 59 | ||||||||||||||||
Total costs | 1,664 | 1,754 | 120 | 43 | 1,917 | ||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||
Gross profit | $ | 864 | $ | 774 | $ | 74 | $ | 16 | $ | 864 | |||||||||||
Copper sales (millions of recoverable pounds) | 790 | 790 | |||||||||||||||||||
Molybdenum sales (millions of recoverable pounds)a | 17 | ||||||||||||||||||||
Gross profit per pound of copper/molybdenum: | |||||||||||||||||||||
Revenues, excluding adjustments | $ | 3.21 | $ | 3.21 | $ | 11.39 | |||||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||||
and other costs shown below | 1.87 | 1.76 | 6.45 | ||||||||||||||||||
By-product credits | (0.25 | ) | — | — | |||||||||||||||||
Treatment charges | 0.12 | 0.12 | — | ||||||||||||||||||
Unit net cash costs | 1.74 | 1.88 | 6.45 | ||||||||||||||||||
Depreciation, depletion and amortization | 0.29 | 0.27 | 0.58 | ||||||||||||||||||
Noncash and other costs, net | 0.08 | 0.07 | 0.04 | ||||||||||||||||||
Total unit costs | 2.11 | 2.22 | 7.07 | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (0.01 | ) | (0.01 | ) | — | ||||||||||||||||
Gross profit per pound | $ | 1.09 | $ | 0.98 | $ | 4.32 | |||||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||||
Production | Depletion and | ||||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||||
Totals presented above | $ | 2,788 | $ | 1,536 | $ | 229 | |||||||||||||||
Treatment charges | — | 93 | — | ||||||||||||||||||
Noncash and other costs, net | — | 59 | — | ||||||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||||||
on prior period open sales | (7 | ) | — | — | |||||||||||||||||
Eliminations and other | (26 | ) | (32 | ) | 6 | ||||||||||||||||
North America copper mines | 2,755 | 1,656 | 235 | ||||||||||||||||||
Other mining & eliminationsc | 5,255 | 3,524 | 505 | ||||||||||||||||||
Total mining | 8,010 | 5,180 | 740 | ||||||||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | ||||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | |||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 |
a. | Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing. |
b. | Includes gold and silver product revenues and production costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule "Business Segments," beginning on page XI. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 479 | $ | 479 | $ | 14 | $ | 493 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 314 | 305 | 15 | 320 | |||||||||||||
By-product credits | (8 | ) | — | — | — | ||||||||||||
Treatment charges | 30 | 30 | — | 30 | |||||||||||||
Royalty on metals | 1 | 1 | — | 1 | |||||||||||||
Net cash costs | 337 | 336 | 15 | 351 | |||||||||||||
Depreciation, depletion and amortization | 72 | 70 | 2 | 72 | |||||||||||||
Noncash and other (credits) costs, net | (4 | ) | (5 | ) | 1 | (4 | ) | ||||||||||
Total costs | 405 | 401 | 18 | 419 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (8 | ) | (8 | ) | — | (8 | ) | ||||||||||
Gross profit (loss) | $ | 66 | $ | 70 | $ | (4 | ) | $ | 66 | ||||||||
Copper sales (millions of recoverable pounds) | 178 | 178 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.69 | $ | 2.69 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.77 | 1.72 | |||||||||||||||
By-product credits | (0.04 | ) | — | ||||||||||||||
Treatment charges | 0.17 | 0.17 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.90 | 1.89 | |||||||||||||||
Depreciation, depletion and amortization | 0.40 | 0.39 | |||||||||||||||
Noncash and other (credits) costs, net | (0.02 | ) | (0.03 | ) | |||||||||||||
Total unit costs | 2.28 | 2.25 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.05 | ) | (0.05 | ) | |||||||||||||
Gross profit per pound | $ | 0.36 | $ | 0.39 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 493 | $ | 320 | $ | 72 | |||||||||||
Treatment charges | (30 | ) | — | — | |||||||||||||
Royalty on metals | (1 | ) | — | — | |||||||||||||
Noncash and other (credits) costs, net | — | (4 | ) | — | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (8 | ) | — | — | |||||||||||||
Eliminations and other | (1 | ) | (1 | ) | — | ||||||||||||
South America mining | 453 | 315 | 72 | ||||||||||||||
Other mining & eliminationsb | 3,226 | 2,250 | 330 | ||||||||||||||
Total mining | 3,679 | 2,565 | 402 | ||||||||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | c | |||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | c |
a. | Includes silver sales of 373 thousand ounces ($15.15 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
c. | Includes impairment of oil and gas properties of $2.7 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 984 | $ | 984 | $ | 75 | $ | 1,059 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 511 | 474 | 41 | 515 | |||||||||||||
By-product credits | (71 | ) | — | — | — | ||||||||||||
Treatment charges | 55 | 55 | — | 55 | |||||||||||||
Royalty on metals | 3 | 3 | — | 3 | |||||||||||||
Net cash costs | 498 | b | 532 | 41 | 573 | ||||||||||||
Depreciation, depletion and amortization | 95 | 90 | 5 | 95 | |||||||||||||
Noncash and other costs, net | 23 | 19 | 4 | 23 | |||||||||||||
Total costs | 616 | 641 | 50 | 691 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 32 | 32 | — | 32 | |||||||||||||
Gross profit | $ | 400 | $ | 375 | $ | 25 | $ | 400 | |||||||||
Copper sales (millions of recoverable pounds) | 310 | b | 310 | ||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 3.17 | $ | 3.17 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.64 | 1.52 | |||||||||||||||
By-product credits | (0.23 | ) | — | ||||||||||||||
Treatment charges | 0.18 | 0.18 | |||||||||||||||
Royalty on metals | 0.01 | 0.01 | |||||||||||||||
Unit net cash costs | 1.60 | b | 1.71 | ||||||||||||||
Depreciation, depletion and amortization | 0.30 | 0.29 | |||||||||||||||
Noncash and other costs, net | 0.08 | 0.06 | |||||||||||||||
Total unit costs | 1.98 | 2.06 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 0.10 | 0.10 | |||||||||||||||
Gross profit per pound | $ | 1.29 | $ | 1.21 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 1,059 | $ | 515 | $ | 95 | |||||||||||
Treatment charges | (55 | ) | — | — | |||||||||||||
Royalty on metals | (3 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 23 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 32 | — | — | ||||||||||||||
Eliminations and other | (2 | ) | (8 | ) | — | ||||||||||||
South America mining | 1,031 | 530 | 95 | ||||||||||||||
Other mining & eliminationsc | 3,255 | 2,224 | 299 | ||||||||||||||
Total mining | 4,286 | 2,754 | 394 | ||||||||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | ||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 |
a. | Includes gold sales of 20 thousand ounces ($1,302 per ounce average realized price) and silver sales of 748 thousand ounces ($18.83 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Following is a reconciliation of South America mining's second-quarter 2014 unit net cash costs, excluding the Candelaria and Ojos del Salado mines: |
Net Cash Costs (in millions) | Copper Sales (millions of recoverable pounds) | Unit Net Cash Costs (per pound of copper) | |||||||||
Presented above | $ | 498 | 310 | $ | 1.60 | ||||||
Less: Candelaria and Ojos del Salado | 140 | 80 | |||||||||
$ | 358 | 230 | $ | 1.55 |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 1,013 | $ | 1,013 | $ | 35 | $ | 1,048 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 664 | 642 | 33 | 675 | |||||||||||||
By-product credits | (24 | ) | — | — | — | ||||||||||||
Treatment charges | 64 | 64 | — | 64 | |||||||||||||
Royalty on metals | 1 | 1 | — | 1 | |||||||||||||
Net cash costs | 705 | 707 | 33 | 740 | |||||||||||||
Depreciation, depletion and amortization | 147 | 143 | 4 | 147 | |||||||||||||
Noncash and other costs, net | — | — | — | — | |||||||||||||
Total costs | 852 | 850 | 37 | 887 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (31 | ) | (31 | ) | — | (31 | ) | ||||||||||
Gross profit (loss) | $ | 130 | $ | 132 | $ | (2 | ) | $ | 130 | ||||||||
Copper sales (millions of recoverable pounds) | 378 | 378 | |||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 2.68 | $ | 2.68 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.76 | 1.70 | |||||||||||||||
By-product credits | (0.06 | ) | — | ||||||||||||||
Treatment charges | 0.17 | 0.17 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.87 | 1.87 | |||||||||||||||
Depreciation, depletion and amortization | 0.39 | 0.38 | |||||||||||||||
Noncash and other costs, net | — | — | |||||||||||||||
Total unit costs | 2.26 | 2.25 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.08 | ) | (0.08 | ) | |||||||||||||
Gross profit per pound | $ | 0.34 | $ | 0.35 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 1,048 | $ | 675 | $ | 147 | |||||||||||
Treatment charges | (64 | ) | — | — | |||||||||||||
Royalty on metals | (1 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | — | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (31 | ) | — | — | |||||||||||||
Eliminations and other | (13 | ) | (15 | ) | — | ||||||||||||
South America mining | 939 | 660 | 147 | ||||||||||||||
Other mining & eliminationsb | 6,393 | 4,531 | 660 | ||||||||||||||
Total mining | 7,332 | 5,191 | 807 | ||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | c | |||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | c |
a. | Includes silver sales of 759 thousand ounces ($14.97 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
b. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
c. | Includes impairment of oil and gas properties of $5.8 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
South America Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Othera | Total | |||||||||||||
Revenues, excluding adjustments | $ | 1,951 | $ | 1,951 | $ | 159 | $ | 2,110 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 972 | 900 | 81 | 981 | |||||||||||||
By-product credits | (150 | ) | — | — | — | ||||||||||||
Treatment charges | 108 | 108 | — | 108 | |||||||||||||
Royalty on metals | 3 | 3 | — | 3 | |||||||||||||
Net cash costs | 933 | b | 1,011 | 81 | 1,092 | ||||||||||||
Depreciation, depletion and amortization | 182 | 170 | 12 | 182 | |||||||||||||
Noncash and other costs, net | 40 | 38 | 2 | 40 | |||||||||||||
Total costs | 1,155 | 1,219 | 95 | 1,314 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (67 | ) | (67 | ) | — | (67 | ) | ||||||||||
Gross profit | $ | 729 | $ | 665 | $ | 64 | $ | 729 | |||||||||
Copper sales (millions of recoverable pounds) | 617 | b | 617 | ||||||||||||||
Gross profit per pound of copper: | |||||||||||||||||
Revenues, excluding adjustments | $ | 3.16 | $ | 3.16 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.57 | 1.46 | |||||||||||||||
By-product credits | (0.24 | ) | — | ||||||||||||||
Treatment charges | 0.18 | 0.18 | |||||||||||||||
Royalty on metals | — | — | |||||||||||||||
Unit net cash costs | 1.51 | b | 1.64 | ||||||||||||||
Depreciation, depletion and amortization | 0.29 | 0.27 | |||||||||||||||
Noncash and other costs, net | 0.07 | 0.06 | |||||||||||||||
Total unit costs | 1.87 | 1.97 | |||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.11 | ) | (0.11 | ) | |||||||||||||
Gross profit per pound | $ | 1.18 | $ | 1.08 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 2,110 | $ | 981 | $ | 182 | |||||||||||
Treatment charges | (108 | ) | — | — | |||||||||||||
Royalty on metals | (3 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 40 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (67 | ) | — | — | |||||||||||||
Eliminations and other | (3 | ) | (15 | ) | — | ||||||||||||
South America mining | 1,929 | 1,006 | 182 | ||||||||||||||
Other mining & eliminationsc | 6,081 | 4,174 | 558 | ||||||||||||||
Total mining | 8,010 | 5,180 | 740 | ||||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | ||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 |
a. | Includes gold sales of 43 thousand ounces ($1,302 per ounce average realized price) and silver sales of 1.5 million ounces ($19.34 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to FCX's molybdenum sales company at market-based pricing. |
Net Cash Costs (in millions) | Copper Sales (millions of recoverable pounds) | Unit Net Cash Costs (per pound of copper) | |||||||||
Presented above | $ | 933 | 617 | $ | 1.51 | ||||||
Less: Candelaria and Ojos del Salado | 263 | 174 | |||||||||
$ | 670 | 443 | $ | 1.51 |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 511 | $ | 511 | $ | 406 | $ | 8 | $ | 925 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 442 | 244 | 194 | 4 | 442 | ||||||||||||||
Gold and silver credits | (416 | ) | — | — | — | — | |||||||||||||
Treatment charges | 62 | 34 | 27 | 1 | 62 | ||||||||||||||
Export duties | 36 | 20 | 16 | — | 36 | ||||||||||||||
Royalty on metals | 35 | 19 | 16 | — | 35 | ||||||||||||||
Net cash costs | 159 | 317 | 253 | 5 | 575 | ||||||||||||||
Depreciation and amortization | 78 | 43 | 34 | 1 | 78 | ||||||||||||||
Noncash and other costs, net | 8 | 5 | 3 | — | 8 | ||||||||||||||
Total costs | 245 | 365 | 290 | 6 | 661 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (4 | ) | (4 | ) | 2 | — | (2 | ) | |||||||||||
PT Smelting intercompany loss | (5 | ) | (3 | ) | (2 | ) | — | (5 | ) | ||||||||||
Gross profit | $ | 257 | $ | 139 | $ | 116 | $ | 2 | $ | 257 | |||||||||
Copper sales (millions of recoverable pounds) | 196 | 196 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 346 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.61 | $ | 2.61 | $ | 1,173 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.26 | 1.25 | 560 | ||||||||||||||||
Gold and silver credits | (2.13 | ) | — | — | |||||||||||||||
Treatment charges | 0.32 | 0.18 | 79 | ||||||||||||||||
Export duties | 0.18 | 0.10 | 45 | ||||||||||||||||
Royalty on metals | 0.18 | 0.10 | 45 | ||||||||||||||||
Unit net cash costs | 0.81 | 1.63 | 729 | ||||||||||||||||
Depreciation and amortization | 0.40 | 0.22 | 100 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 10 | ||||||||||||||||
Total unit costs | 1.25 | 1.87 | 839 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.02 | ) | (0.02 | ) | 7 | ||||||||||||||
PT Smelting intercompany loss | (0.02 | ) | (0.01 | ) | (5 | ) | |||||||||||||
Gross profit per pound/ounce | $ | 1.32 | $ | 0.71 | $ | 336 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 925 | $ | 442 | $ | 78 | |||||||||||||
Treatment charges | (62 | ) | — | — | |||||||||||||||
Export duties | (36 | ) | — | — | |||||||||||||||
Royalty on metals | (35 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 8 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (2 | ) | — | — | |||||||||||||||
PT Smelting intercompany loss | — | 5 | — | ||||||||||||||||
Indonesia mining | 790 | 455 | 78 | ||||||||||||||||
Other mining & eliminationsb | 2,889 | 2,110 | 324 | ||||||||||||||||
Total mining | 3,679 | 2,565 | 402 | ||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | c | |||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | c |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 372 | $ | 372 | $ | 176 | $ | 7 | $ | 555 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 451 | 303 | 142 | 6 | 451 | ||||||||||||||
Gold and silver credits | (184 | ) | — | — | — | — | |||||||||||||
Treatment charges | 30 | 20 | 10 | — | 30 | ||||||||||||||
Royalty on metals | 14 | 9 | 5 | — | 14 | ||||||||||||||
Net cash costs | 311 | 332 | 157 | 6 | 495 | ||||||||||||||
Depreciation and amortization | 54 | 36 | 17 | 1 | 54 | ||||||||||||||
Noncash and other costs, net | 64 | b | 43 | 20 | 1 | 64 | |||||||||||||
Total costs | 429 | 411 | 194 | 8 | 613 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | 11 | 11 | 1 | — | 12 | ||||||||||||||
PT Smelting intercompany profit | 4 | 3 | 1 | — | 4 | ||||||||||||||
Gross loss | $ | (42 | ) | $ | (25 | ) | $ | (16 | ) | $ | (1 | ) | $ | (42 | ) | ||||
Copper sales (millions of recoverable pounds) | 117 | 117 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 135 | ||||||||||||||||||
Gross loss per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 3.19 | $ | 3.19 | $ | 1,294 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 3.86 | 2.59 | 1,050 | ||||||||||||||||
Gold and silver credits | (1.57 | ) | — | — | |||||||||||||||
Treatment charges | 0.26 | 0.17 | 70 | ||||||||||||||||
Royalty on metals | 0.11 | 0.08 | 31 | ||||||||||||||||
Unit net cash costs | 2.66 | 2.84 | 1,151 | ||||||||||||||||
Depreciation and amortization | 0.47 | 0.31 | 127 | ||||||||||||||||
Noncash and other costs, net | 0.55 | b | 0.37 | 151 | |||||||||||||||
Total unit costs | 3.68 | 3.52 | 1,429 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | 0.09 | 0.09 | 5 | ||||||||||||||||
PT Smelting intercompany profit | 0.03 | 0.02 | 9 | ||||||||||||||||
Gross loss per pound/ounce | $ | (0.37 | ) | $ | (0.22 | ) | $ | (121 | ) | ||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 555 | $ | 451 | $ | 54 | |||||||||||||
Treatment charges | (30 | ) | — | — | |||||||||||||||
Royalty on metals | (14 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 64 | b | — | |||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | 12 | — | — | ||||||||||||||||
PT Smelting intercompany profit | — | (4 | ) | — | |||||||||||||||
Indonesia mining | 523 | 511 | 54 | ||||||||||||||||
Other mining & eliminationsc | 3,763 | 2,243 | 340 | ||||||||||||||||
Total mining | 4,286 | 2,754 | 394 | ||||||||||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | ||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 933 | $ | 933 | $ | 716 | $ | 16 | $ | 1,665 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 882 | 494 | 380 | 8 | 882 | ||||||||||||||
Gold and silver credits | (741 | ) | — | — | — | — | |||||||||||||
Treatment charges | 108 | 61 | 46 | 1 | 108 | ||||||||||||||
Export duties | 57 | 32 | 24 | 1 | 57 | ||||||||||||||
Royalty on metals | 60 | 33 | 26 | 1 | 60 | ||||||||||||||
Net cash costs | 366 | 620 | 476 | 11 | 1,107 | ||||||||||||||
Depreciation and amortization | 148 | 83 | 64 | 1 | 148 | ||||||||||||||
Noncash and other costs, net | 14 | 8 | 6 | — | 14 | ||||||||||||||
Total costs | 528 | 711 | 546 | 12 | 1,269 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (52 | ) | (52 | ) | 9 | — | (43 | ) | |||||||||||
PT Smelting intercompany profit | 2 | 2 | — | — | 2 | ||||||||||||||
Gross profit | $ | 355 | $ | 172 | $ | 179 | $ | 4 | $ | 355 | |||||||||
Copper sales (millions of recoverable pounds) | 351 | 351 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 606 | ||||||||||||||||||
Gross profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 2.66 | $ | 2.66 | $ | 1,183 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 2.51 | 1.41 | 626 | ||||||||||||||||
Gold and silver credits | (2.11 | ) | — | — | |||||||||||||||
Treatment charges | 0.31 | 0.17 | 77 | ||||||||||||||||
Export duties | 0.16 | 0.09 | 41 | ||||||||||||||||
Royalty on metals | 0.17 | 0.10 | 42 | ||||||||||||||||
Unit net cash costs | 1.04 | 1.77 | 786 | ||||||||||||||||
Depreciation and amortization | 0.42 | 0.24 | 106 | ||||||||||||||||
Noncash and other costs, net | 0.04 | 0.02 | 10 | ||||||||||||||||
Total unit costs | 1.50 | 2.03 | 902 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.15 | ) | (0.15 | ) | 14 | ||||||||||||||
PT Smelting intercompany profit | 0.01 | 0.01 | 2 | ||||||||||||||||
Gross profit per pound/ounce | $ | 1.02 | $ | 0.49 | $ | 297 | |||||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 1,665 | $ | 882 | $ | 148 | |||||||||||||
Treatment charges | (108 | ) | — | — | |||||||||||||||
Export duties | (57 | ) | — | — | |||||||||||||||
Royalty on metals | (60 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 14 | — | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (43 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (2 | ) | — | |||||||||||||||
Indonesia mining | 1,397 | 894 | 148 | ||||||||||||||||
Other mining & eliminationsb | 5,935 | 4,297 | 659 | ||||||||||||||||
Total mining | 7,332 | 5,191 | 807 | ||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | c | |||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | c |
FREEPORT-McMoRan INC. | |||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||||
Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||||
(In millions) | Method | Copper | Gold | Silvera | Total | ||||||||||||||
Revenues, excluding adjustments | $ | 713 | $ | 713 | $ | 386 | $ | 14 | $ | 1,113 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 814 | 521 | 283 | 10 | 814 | ||||||||||||||
Gold and silver credits | (419 | ) | — | — | — | — | |||||||||||||
Treatment charges | 56 | 36 | 19 | 1 | 56 | ||||||||||||||
Royalty on metals | 27 | 17 | 9 | 1 | 27 | ||||||||||||||
Net cash costs | 478 | 574 | 311 | 12 | 897 | ||||||||||||||
Depreciation and amortization | 102 | 65 | 36 | 1 | 102 | ||||||||||||||
Noncash and other costs, net | 138 | b | 88 | 48 | 2 | 138 | |||||||||||||
Total costs | 718 | 727 | 395 | 15 | 1,137 | ||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (56 | ) | (56 | ) | 18 | 1 | (37 | ) | |||||||||||
PT Smelting intercompany profit | 58 | 37 | 20 | 1 | 58 | ||||||||||||||
Gross (loss) profit | $ | (3 | ) | $ | (33 | ) | $ | 29 | $ | 1 | $ | (3 | ) | ||||||
Copper sales (millions of recoverable pounds) | 226 | 226 | |||||||||||||||||
Gold sales (thousands of recoverable ounces) | 297 | ||||||||||||||||||
Gross (loss) profit per pound of copper/per ounce of gold: | |||||||||||||||||||
Revenues, excluding adjustments | $ | 3.15 | $ | 3.15 | $ | 1,299 | |||||||||||||
Site production and delivery, before net noncash | |||||||||||||||||||
and other costs shown below | 3.60 | 2.31 | 950 | ||||||||||||||||
Gold and silver credits | (1.85 | ) | — | — | |||||||||||||||
Treatment charges | 0.25 | 0.16 | 65 | ||||||||||||||||
Royalty on metals | 0.12 | 0.07 | 31 | ||||||||||||||||
Unit net cash costs | 2.12 | 2.54 | 1,046 | ||||||||||||||||
Depreciation and amortization | 0.45 | 0.29 | 120 | ||||||||||||||||
Noncash and other costs, net | 0.61 | b | 0.39 | 161 | |||||||||||||||
Total unit costs | 3.18 | 3.22 | 1,327 | ||||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (0.24 | ) | (0.24 | ) | 59 | ||||||||||||||
PT Smelting intercompany profit | 0.26 | 0.16 | 68 | ||||||||||||||||
Gross (loss) profit per pound/ounce | $ | (0.01 | ) | $ | (0.15 | ) | $ | 99 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||||
Production | Depletion and | ||||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||||
Totals presented above | $ | 1,113 | $ | 814 | $ | 102 | |||||||||||||
Treatment charges | (56 | ) | — | — | |||||||||||||||
Royalty on metals | (27 | ) | — | — | |||||||||||||||
Noncash and other costs, net | — | 138 | b | — | |||||||||||||||
Revenue adjustments, primarily for pricing on | |||||||||||||||||||
prior period open sales | (37 | ) | — | — | |||||||||||||||
PT Smelting intercompany profit | — | (58 | ) | — | |||||||||||||||
Indonesia mining | 993 | 894 | 102 | ||||||||||||||||
Other mining & eliminationsc | 7,017 | 4,286 | 638 | ||||||||||||||||
Total mining | 8,010 | 5,180 | 740 | ||||||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | ||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | |||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 275 | $ | 275 | $ | 76 | $ | 351 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 161 | 141 | 45 | 186 | |||||||||||||
Cobalt creditsb | (55 | ) | — | — | — | ||||||||||||
Royalty on metals | 6 | 5 | 1 | 6 | |||||||||||||
Net cash costs | 112 | 146 | 46 | 192 | |||||||||||||
Depreciation, depletion and amortization | 57 | 45 | 12 | 57 | |||||||||||||
Noncash and other costs, net | 4 | 3 | 1 | 4 | |||||||||||||
Total costs | 173 | 194 | 59 | 253 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 2 | 2 | 4 | 6 | |||||||||||||
Gross profit | $ | 104 | $ | 83 | $ | 21 | $ | 104 | |||||||||
Copper sales (millions of recoverable pounds) | 104 | 104 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 8 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.63 | $ | 2.63 | $ | 9.27 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.54 | 1.35 | 5.48 | ||||||||||||||
Cobalt creditsb | (0.53 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.05 | 0.16 | ||||||||||||||
Unit net cash costs | 1.07 | 1.40 | 5.64 | ||||||||||||||
Depreciation, depletion and amortization | 0.55 | 0.43 | 1.42 | ||||||||||||||
Noncash and other costs, net | 0.03 | 0.03 | 0.10 | ||||||||||||||
Total unit costs | 1.65 | 1.86 | 7.16 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 0.02 | 0.02 | 0.50 | ||||||||||||||
Gross profit per pound | $ | 1.00 | $ | 0.79 | $ | 2.61 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 351 | $ | 186 | $ | 57 | |||||||||||
Royalty on metals | (6 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 4 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 6 | — | — | ||||||||||||||
Africa mining | 351 | 190 | 57 | ||||||||||||||
Other mining & eliminationsc | 3,328 | 2,375 | 345 | ||||||||||||||
Total mining | 3,679 | 2,565 | 402 | ||||||||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | d | |||||||||||||
Corporate, other & eliminations | — | 2 | 3 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
d. | Includes impairment of oil and gas properties of $2.7 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 362 | $ | 362 | $ | 65 | $ | 427 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 171 | 159 | 35 | 194 | |||||||||||||
Cobalt creditsb | (41 | ) | — | — | — | ||||||||||||
Royalty on metals | 8 | 7 | 1 | 8 | |||||||||||||
Net cash costs | 138 | 166 | 36 | 202 | |||||||||||||
Depreciation, depletion and amortization | 63 | 54 | 9 | 63 | |||||||||||||
Noncash and other costs, net | 4 | 3 | 1 | 4 | |||||||||||||
Total costs | 205 | 223 | 46 | 269 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | — | — | (1 | ) | (1 | ) | |||||||||||
Gross profit | $ | 157 | $ | 139 | $ | 18 | $ | 157 | |||||||||
Copper sales (millions of recoverable pounds) | 118 | 118 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 7 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 3.08 | $ | 3.08 | $ | 9.58 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.46 | 1.35 | 5.22 | ||||||||||||||
Cobalt creditsb | (0.34 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.06 | 0.15 | ||||||||||||||
Unit net cash costs | 1.18 | 1.41 | 5.37 | ||||||||||||||
Depreciation, depletion and amortization | 0.54 | 0.46 | 1.30 | ||||||||||||||
Noncash and other costs, net | 0.03 | 0.03 | 0.08 | ||||||||||||||
Total unit costs | 1.75 | 1.90 | 6.75 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | — | — | (0.19 | ) | |||||||||||||
Gross profit per pound | $ | 1.33 | $ | 1.18 | $ | 2.64 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 427 | $ | 194 | $ | 63 | |||||||||||
Royalty on metals | (8 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 4 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (1 | ) | — | — | |||||||||||||
Africa mining | 418 | 198 | 63 | ||||||||||||||
Other mining & eliminationsc | 3,868 | 2,556 | 331 | ||||||||||||||
Total mining | 4,286 | 2,754 | 394 | ||||||||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | ||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 631 | $ | 631 | $ | 152 | $ | 783 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 370 | 325 | 92 | 417 | |||||||||||||
Cobalt creditsb | (104 | ) | — | — | — | ||||||||||||
Royalty on metals | 14 | 12 | 2 | 14 | |||||||||||||
Net cash costs | 280 | 337 | 94 | 431 | |||||||||||||
Depreciation, depletion and amortization | 130 | 109 | 21 | 130 | |||||||||||||
Noncash and other costs, net | 8 | 6 | 2 | 8 | |||||||||||||
Total costs | 418 | 452 | 117 | 569 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (7 | ) | (7 | ) | (1 | ) | (8 | ) | |||||||||
Gross profit | $ | 206 | $ | 172 | $ | 34 | $ | 206 | |||||||||
Copper sales (millions of recoverable pounds) | 237 | 237 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 16 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 2.66 | $ | 2.66 | $ | 9.23 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.56 | 1.37 | 5.54 | ||||||||||||||
Cobalt creditsb | (0.44 | ) | — | — | |||||||||||||
Royalty on metals | 0.06 | 0.05 | 0.15 | ||||||||||||||
Unit net cash costs | 1.18 | 1.42 | 5.69 | ||||||||||||||
Depreciation, depletion and amortization | 0.55 | 0.46 | 1.31 | ||||||||||||||
Noncash and other costs, net | 0.03 | 0.03 | 0.08 | ||||||||||||||
Total unit costs | 1.76 | 1.91 | 7.08 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.03 | ) | (0.03 | ) | (0.04 | ) | |||||||||||
Gross profit per pound | $ | 0.87 | $ | 0.72 | $ | 2.11 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 783 | $ | 417 | $ | 130 | |||||||||||
Royalty on metals | (14 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 8 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (8 | ) | — | — | |||||||||||||
Africa mining | 761 | 425 | 130 | ||||||||||||||
Other mining & eliminationsc | 6,571 | 4,766 | 677 | ||||||||||||||
Total mining | 7,332 | 5,191 | 807 | ||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | d | |||||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||||
As reported in FCX’s consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | d |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
d. | Includes impairment of oil and gas properties of $5.8 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||||
Africa Mining Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
By-Product | Co-Product Method | ||||||||||||||||
(In millions) | Method | Copper | Cobalt | Total | |||||||||||||
Revenues, excluding adjustmentsa | $ | 621 | $ | 621 | $ | 137 | $ | 758 | |||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 296 | 262 | 77 | 339 | |||||||||||||
Cobalt creditsb | (96 | ) | — | — | — | ||||||||||||
Royalty on metals | 14 | 12 | 2 | 14 | |||||||||||||
Net cash costs | 214 | 274 | 79 | 353 | |||||||||||||
Depreciation, depletion and amortization | 114 | 99 | 15 | 114 | |||||||||||||
Noncash and other costs, net | 11 | 10 | 1 | 11 | |||||||||||||
Total costs | 339 | 383 | 95 | 478 | |||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (1 | ) | (1 | ) | 2 | 1 | |||||||||||
Gross profit | $ | 281 | $ | 237 | $ | 44 | $ | 281 | |||||||||
Copper sales (millions of recoverable pounds) | 202 | 202 | |||||||||||||||
Cobalt sales (millions of contained pounds) | 15 | ||||||||||||||||
Gross profit per pound of copper/cobalt: | |||||||||||||||||
Revenues, excluding adjustmentsa | $ | 3.08 | $ | 3.08 | $ | 9.29 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||||
and other costs shown below | 1.47 | 1.30 | 5.19 | ||||||||||||||
Cobalt creditsb | (0.48 | ) | — | — | |||||||||||||
Royalty on metals | 0.07 | 0.06 | 0.16 | ||||||||||||||
Unit net cash costs | 1.06 | 1.36 | 5.35 | ||||||||||||||
Depreciation, depletion and amortization | 0.57 | 0.49 | 1.03 | ||||||||||||||
Noncash and other costs, net | 0.05 | 0.04 | 0.09 | ||||||||||||||
Total unit costs | 1.68 | 1.89 | 6.47 | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | (0.01 | ) | (0.01 | ) | 0.13 | ||||||||||||
Gross profit per pound | $ | 1.39 | $ | 1.18 | $ | 2.95 | |||||||||||
Reconciliation to Amounts Reported | Depreciation, | ||||||||||||||||
Production | Depletion and | ||||||||||||||||
(In millions) | Revenues | and Delivery | Amortization | ||||||||||||||
Totals presented above | $ | 758 | $ | 339 | $ | 114 | |||||||||||
Royalty on metals | (14 | ) | — | — | |||||||||||||
Noncash and other costs, net | — | 11 | — | ||||||||||||||
Revenue adjustments, primarily for pricing | |||||||||||||||||
on prior period open sales | 1 | — | — | ||||||||||||||
Africa mining | 745 | 350 | 114 | ||||||||||||||
Other mining & eliminationsc | 7,265 | 4,830 | 626 | ||||||||||||||
Total mining | 8,010 | 5,180 | 740 | ||||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | ||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | |||||||||||||
As reported in FCX’s consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 |
a. | Includes point-of-sale transportation costs as negotiated in customer contracts. |
b. | Net of cobalt downstream processing and freight costs. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. |
FREEPORT-McMoRan INC. | ||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | ||||||||||||
Three Months Ended June 30, | ||||||||||||
(In millions) | 2015 | 2014 | ||||||||||
Revenues, excluding adjustmentsa | $ | 112 | $ | 181 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 80 | 79 | ||||||||||
Treatment charges and other | 10 | 11 | ||||||||||
Net cash costs | 90 | 90 | ||||||||||
Depreciation, depletion and amortization | 25 | 24 | ||||||||||
Noncash and other costs, net | 4 | b | 2 | |||||||||
Total costs | 119 | 116 | ||||||||||
Gross (loss) profit | $ | (7 | ) | $ | 65 | |||||||
Molybdenum sales (millions of recoverable pounds)a | 13 | 14 | ||||||||||
Gross profit per pound of molybdenum: | ||||||||||||
Revenues, excluding adjustmentsa | $ | 9.00 | $ | 12.90 | ||||||||
Site production and delivery, before net noncash | ||||||||||||
and other costs shown below | 6.35 | 5.64 | ||||||||||
Treatment charges and other | 0.84 | 0.83 | ||||||||||
Unit net cash costs | 7.19 | 6.47 | ||||||||||
Depreciation, depletion and amortization | 1.97 | 1.69 | ||||||||||
Noncash and other costs, net | 0.37 | b | 0.10 | |||||||||
Total unit costs | 9.53 | 8.26 | ||||||||||
Gross (loss) profit per pound | $ | (0.53 | ) | $ | 4.64 | |||||||
Reconciliation to Amounts Reported | ||||||||||||
(In millions) | Depreciation, | |||||||||||
Production | Depletion and | |||||||||||
Three Months Ended June 30, 2015 | Revenues | and Delivery | Amortization | |||||||||
Totals presented above | $ | 112 | $ | 80 | $ | 25 | ||||||
Treatment charges and other | (10 | ) | — | — | ||||||||
Noncash and other costs, net | — | 4 | b | — | ||||||||
Molybdenum mines | 102 | 84 | 25 | |||||||||
Other mining & eliminationsc | 3,577 | 2,481 | 377 | |||||||||
Total mining | 3,679 | 2,565 | 402 | |||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | d | ||||||||
Corporate, other & eliminations | — | 2 | 3 | |||||||||
As reported in FCX’s consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | d | |||||
Three Months Ended June 30, 2014 | ||||||||||||
Totals presented above | $ | 181 | $ | 79 | $ | 24 | ||||||
Treatment charges and other | (11 | ) | — | — | ||||||||
Noncash and other costs, net | — | 2 | — | |||||||||
Molybdenum mines | 170 | 81 | 24 | |||||||||
Other mining & eliminationsc | 4,116 | 2,673 | 370 | |||||||||
Total mining | 4,286 | 2,754 | 394 | |||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | |||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | ||||||||
As reported in FCX’s consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 |
a. | Reflects sales of the Molybdenum mines' production to FCX's molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Includes charges totaling $3 million ($0.21 per pound) for LCM inventory adjustments. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. Also includes amounts associated with FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines. |
d. | Includes impairment of oil and gas properties of $2.7 billion. |
FREEPORT-McMoRan INC. | |||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | |||||||||||||||
Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||
(In millions) | 2015 | 2014 | |||||||||||||
Revenues, excluding adjustmentsa | $ | 236 | $ | 318 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 161 | 154 | |||||||||||||
Treatment charges and other | 21 | 22 | |||||||||||||
Net cash costs | 182 | 176 | |||||||||||||
Depreciation, depletion and amortization | 51 | 46 | |||||||||||||
Noncash and other costs, net | 6 | b | 3 | ||||||||||||
Total costs | 239 | 225 | |||||||||||||
Gross (loss) profit | $ | (3 | ) | $ | 93 | ||||||||||
Molybdenum sales (millions of recoverable pounds)a | 26 | 27 | |||||||||||||
Gross profit per pound of molybdenum: | |||||||||||||||
Revenues, excluding adjustmentsa | $ | 9.34 | $ | 11.88 | |||||||||||
Site production and delivery, before net noncash | |||||||||||||||
and other costs shown below | 6.34 | 5.75 | |||||||||||||
Treatment charges and other | 0.84 | 0.83 | |||||||||||||
Unit net cash costs | 7.18 | 6.58 | |||||||||||||
Depreciation, depletion and amortization | 2.00 | 1.72 | |||||||||||||
Noncash and other costs, net | 0.25 | b | 0.10 | ||||||||||||
Total unit costs | 9.43 | 8.40 | |||||||||||||
Gross (loss) profit per pound | $ | (0.09 | ) | $ | 3.48 | ||||||||||
Reconciliation to Amounts Reported | |||||||||||||||
(In millions) | Depreciation, | ||||||||||||||
Production | Depletion and | ||||||||||||||
Six Months Ended June 30, 2015 | Revenues | and Delivery | Amortization | ||||||||||||
Totals presented above | $ | 236 | $ | 161 | $ | 51 | |||||||||
Treatment charges and other | (21 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 6 | b | — | |||||||||||
Molybdenum mines | 215 | 167 | 51 | ||||||||||||
Other mining & eliminationsc | 7,117 | 5,024 | 756 | ||||||||||||
Total mining | 7,332 | 5,191 | 807 | ||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | d | |||||||||||
Corporate, other & eliminations | — | 5 | 7 | ||||||||||||
As reported in FCX’s consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | d | ||||||||
Six Months Ended June 30, 2014 | |||||||||||||||
Totals presented above | $ | 318 | $ | 154 | $ | 46 | |||||||||
Treatment charges and other | (22 | ) | — | — | |||||||||||
Noncash and other costs, net | — | 3 | — | ||||||||||||
Molybdenum mines | 296 | 157 | 46 | ||||||||||||
Other mining & eliminationsc | 7,714 | 5,023 | 694 | ||||||||||||
Total mining | 8,010 | 5,180 | 740 | ||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | ||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | |||||||||||
As reported in FCX’s consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 |
a. | Reflects sales of the Molybdenum mines' production to FCX's molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, FCX's consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table. |
b. | Includes charges totaling $3 million ($0.11 per pound) for LCM inventory adjustments. |
c. | Represents the combined total for all other mining operations and the related eliminations, as presented in the supplemental schedule, “Business Segments,” beginning on page XI. Also includes amounts associated with FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines. |
d. | Includes impairment of oil and gas properties of $5.8 billion. |
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||||
Total | ||||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||||
Oil and gas revenues before derivatives | $ | 480 | $ | 63 | $ | 12 | $ | 555 | a | |||||||||||
Cash gains on derivative contracts | 101 | — | — | 101 | ||||||||||||||||
Realized revenues | $ | 581 | $ | 63 | $ | 12 | 656 | |||||||||||||
Less: cash production costs | 249 | a | ||||||||||||||||||
Cash operating margin | 407 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 485 | |||||||||||||||||||
Less: impairment of oil and gas properties | 2,686 | |||||||||||||||||||
Less: accretion and other costs | 32 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (95 | ) | ||||||||||||||||||
Plus: other net adjustments | 8 | |||||||||||||||||||
Gross loss | $ | (2,883 | ) | |||||||||||||||||
Oil (MMBbls) | 8.6 | |||||||||||||||||||
Gas (Bcf) | 23.5 | |||||||||||||||||||
NGLs (MMBbls) | 0.6 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 13.1 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 55.82 | $ | 2.66 | $ | 20.50 | $ | 42.31 | a | |||||||||||
Cash gains on derivative contracts | 11.79 | — | — | 7.73 | ||||||||||||||||
Realized revenues | $ | 67.61 | $ | 2.66 | $ | 20.50 | 50.04 | |||||||||||||
Less: cash production costs | 19.04 | a | ||||||||||||||||||
Cash operating margin | 31.00 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 36.99 | |||||||||||||||||||
Less: impairment of oil and gas properties | 204.91 | |||||||||||||||||||
Less: accretion and other costs | 2.46 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (7.26 | ) | ||||||||||||||||||
Plus: other net adjustments | 0.61 | |||||||||||||||||||
Gross loss | $ | (220.01 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||||
Totals presented above | $ | 555 | $ | 249 | $ | 485 | ||||||||||||||
Cash gains on derivative contracts | 101 | — | — | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (95 | ) | — | — | ||||||||||||||||
Accretion and other costs | — | 32 | — | |||||||||||||||||
Impairment of oil and gas properties | — | — | 2,686 | |||||||||||||||||
Other net adjustments | 8 | — | — | |||||||||||||||||
U.S. oil & gas operations | 569 | 281 | 3,171 | |||||||||||||||||
Total miningb | 3,679 | 2,565 | 402 | |||||||||||||||||
Corporate, other & eliminations | — | 2 | 3 | |||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 4,248 | $ | 2,848 | $ | 3,576 | ||||||||||||||
a. Following is a summary of average realized price and cash production costs by region. | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
Gulf of Mexico (GOM) | 7,309 | $ | 350 | $ | 47.82 | $ | 124 | $ | 16.98 | |||||||||||
California | 3,462 | 167 | 48.30 | 94 | 27.13 | |||||||||||||||
Haynesville/Madden/Other | 2,336 | 38 | 16.15 | 31 | 13.55 | |||||||||||||||
13,107 | $ | 555 | 42.31 | $ | 249 | 19.04 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Total | ||||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||||
Oil and gas revenues before derivatives | $ | 1,172 | $ | 96 | $ | 38 | $ | 1,306 | a | |||||||||||
Cash losses on derivative contracts | (57 | ) | (6 | ) | — | (63 | ) | |||||||||||||
Realized revenues | $ | 1,115 | $ | 90 | $ | 38 | 1,243 | |||||||||||||
Less: cash production costs | 314 | a | ||||||||||||||||||
Cash operating margin | 929 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 616 | |||||||||||||||||||
Less: accretion and other costs | 15 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (7 | ) | ||||||||||||||||||
Plus: other net adjustments | — | |||||||||||||||||||
Gross profit | $ | 291 | ||||||||||||||||||
Oil (MMBbls) | 11.7 | |||||||||||||||||||
Gas (Bcf) | 20.3 | |||||||||||||||||||
NGLs (MMBbls) | 1.0 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 16.0 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 100.46 | $ | 4.70 | $ | 38.79 | $ | 81.47 | a | |||||||||||
Cash losses on derivative contracts | (4.96 | ) | (0.26 | ) | — | (3.94 | ) | |||||||||||||
Realized revenues | $ | 95.50 | $ | 4.44 | $ | 38.79 | 77.53 | |||||||||||||
Less: cash production costs | 19.57 | a | ||||||||||||||||||
Cash operating margin | 57.96 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 38.39 | |||||||||||||||||||
Less: accretion and other costs | 0.94 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (0.44 | ) | ||||||||||||||||||
Plus: other net adjustments | 0.04 | |||||||||||||||||||
Gross profit | $ | 18.23 | ||||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||||
Totals presented above | $ | 1,306 | $ | 314 | $ | 616 | ||||||||||||||
Cash losses on derivative contracts | (63 | ) | — | — | ||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (7 | ) | — | — | ||||||||||||||||
Accretion and other costs | — | 15 | — | |||||||||||||||||
Other net adjustments | — | — | — | |||||||||||||||||
U.S. oil & gas operations | 1,236 | 329 | 616 | |||||||||||||||||
Total miningb | 4,286 | 2,754 | 394 | |||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 3 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 5,522 | $ | 3,082 | $ | 1,013 | ||||||||||||||
a. Following is a summary of average realized price and cash production costs by region. | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 6,862 | $ | 601 | $ | 87.49 | $ | 101 | $ | 14.80 | |||||||||||
California | 3,578 | 337 | 94.37 | 135 | 37.70 | |||||||||||||||
Haynesville/Madden/Other | 1,629 | 45 | 27.59 | 25 | 15.35 | |||||||||||||||
12,069 | 983 | 81.45 | 261 | 21.66 | ||||||||||||||||
Eagle Ford | 3,959 | 323 | 81.52 | 53 | 13.23 | |||||||||||||||
16,028 | $ | 1,306 | 81.47 | $ | 314 | 19.57 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
U.S. Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||||
Total | ||||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||||
Oil and gas revenues before derivatives | $ | 853 | $ | 125 | $ | 24 | $ | 1,002 | a | |||||||||||
Cash gains on derivative contracts | 201 | — | — | 201 | ||||||||||||||||
Realized revenues | $ | 1,054 | $ | 125 | $ | 24 | 1,203 | |||||||||||||
Less: cash production costs | 503 | a | ||||||||||||||||||
Cash operating margin | 700 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 1,015 | |||||||||||||||||||
Less: impairment of oil and gas properties | 5,790 | |||||||||||||||||||
Less: accretion and other costs | 61 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (143 | ) | ||||||||||||||||||
Plus: other net adjustments | 9 | |||||||||||||||||||
Gross loss | $ | (6,300 | ) | |||||||||||||||||
Oil (MMBbls) | 17.0 | |||||||||||||||||||
Gas (Bcf) | 45.3 | |||||||||||||||||||
NGLs (MMBbls) | 1.1 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 25.6 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMBtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 50.25 | $ | 2.75 | $ | 21.71 | $ | 39.08 | a | |||||||||||
Cash gains on derivative contracts | 11.88 | — | — | 7.87 | ||||||||||||||||
Realized revenues | $ | 62.13 | $ | 2.75 | $ | 21.71 | 46.95 | |||||||||||||
Less: cash production costs | 19.62 | a | ||||||||||||||||||
Cash operating margin | 27.33 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 39.59 | |||||||||||||||||||
Less: impairment of oil and gas properties | 225.89 | |||||||||||||||||||
Less: accretion and other costs | 2.39 | |||||||||||||||||||
Plus: net noncash mark-to-market losses on derivative contracts | (5.60 | ) | ||||||||||||||||||
Plus: other net adjustments | 0.34 | |||||||||||||||||||
Gross loss | $ | (245.80 | ) | |||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||||
Totals presented above | $ | 1,002 | $ | 503 | $ | 1,015 | ||||||||||||||
Cash gains on derivative contracts | 201 | — | — | |||||||||||||||||
Net noncash mark-to-market losses on derivative contracts | (143 | ) | — | — | ||||||||||||||||
Accretion and other costs | — | 61 | — | |||||||||||||||||
Impairment of oil and gas properties | — | — | 5,790 | |||||||||||||||||
Other net adjustments | 9 | — | — | |||||||||||||||||
U.S. oil & gas operations | 1,069 | 564 | 6,805 | |||||||||||||||||
Total miningb | 7,332 | 5,191 | 807 | |||||||||||||||||
Corporate, other & eliminations | — | 5 | 7 | |||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 8,401 | $ | 5,760 | $ | 7,619 | ||||||||||||||
a. Following is a summary of average realized price and cash production costs per BOE by region. | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 13,970 | $ | 621 | $ | 44.40 | $ | 240 | $ | 17.17 | |||||||||||
California | 6,975 | 303 | 43.49 | 205 | 29.43 | |||||||||||||||
Haynesville/Madden/Other | 4,686 | 78 | 16.66 | 58 | 12.42 | |||||||||||||||
25,631 | $ | 1,002 | 39.08 | $ | 503 | 19.62 | ||||||||||||||
FREEPORT-McMoRan INC. | ||||||||||||||||||||
PRODUCT REVENUES AND PRODUCTION COSTS (continued) | ||||||||||||||||||||
Oil & Gas Product Revenues, Cash Production Costs and Realizations | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Total | ||||||||||||||||||||
Natural | U.S. Oil | |||||||||||||||||||
(In millions) | Oil | Gas | NGLs | & Gas | ||||||||||||||||
Oil and gas revenues before derivatives | $ | 2,334 | $ | 194 | $ | 88 | $ | 2,616 | a | |||||||||||
Cash losses on derivative contracts | (115 | ) | (13 | ) | — | (128 | ) | |||||||||||||
Realized revenues | $ | 2,219 | $ | 181 | $ | 88 | 2,488 | |||||||||||||
Less: cash production costs | 612 | a | ||||||||||||||||||
Cash operating margin | 1,876 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 1,232 | |||||||||||||||||||
Less: accretion and other costs | 28 | |||||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 8 | |||||||||||||||||||
Plus: other net adjustments | 1 | |||||||||||||||||||
Gross profit | $ | 625 | ||||||||||||||||||
Oil (MMBbls) | 23.5 | |||||||||||||||||||
Gas (Bcf) | 39.8 | |||||||||||||||||||
NGLs (MMBbls) | 2.1 | |||||||||||||||||||
Oil Equivalents (MMBOE) | 32.2 | |||||||||||||||||||
Oil | Natural Gas | NGLs | ||||||||||||||||||
(per barrel) | (per MMbtu) | (per barrel) | Per BOE | |||||||||||||||||
Oil and gas revenues before derivatives | $ | 99.54 | $ | 4.87 | $ | 42.35 | $ | 81.34 | a | |||||||||||
Cash losses on derivative contracts | (4.91 | ) | (0.32 | ) | — | (3.97 | ) | |||||||||||||
Realized revenues | $ | 94.63 | $ | 4.55 | $ | 42.35 | 77.37 | |||||||||||||
Less: cash production costs | 19.03 | a | ||||||||||||||||||
Cash operating margin | 58.34 | |||||||||||||||||||
Less: depreciation, depletion and amortization | 38.30 | |||||||||||||||||||
Less: accretion and other costs | 0.87 | |||||||||||||||||||
Plus: net noncash mark-to-market gains on derivative contracts | 0.23 | |||||||||||||||||||
Plus: other net adjustments | 0.04 | |||||||||||||||||||
Gross profit | $ | 19.44 | ||||||||||||||||||
Reconciliation to Amounts Reported | ||||||||||||||||||||
(In Millions) | Revenues | Production and Delivery | Depreciation, Depletion and Amortization | |||||||||||||||||
Totals presented above | $ | 2,616 | $ | 612 | $ | 1,232 | ||||||||||||||
Cash losses on derivative contracts | (128 | ) | — | — | ||||||||||||||||
Net noncash mark-to-market gains on derivative contracts | 8 | — | — | |||||||||||||||||
Accretion and other costs | — | 28 | — | |||||||||||||||||
Other net adjustments | 1 | — | — | |||||||||||||||||
U.S. oil & gas operations | 2,497 | 640 | 1,232 | |||||||||||||||||
Total miningb | 8,010 | 5,180 | 740 | |||||||||||||||||
Corporate, other & eliminations | — | (1 | ) | 7 | ||||||||||||||||
As reported in FCX's consolidated financial statements | $ | 10,507 | $ | 5,819 | $ | 1,979 | ||||||||||||||
a. Following is a summary of average realized price and cash production costs per BOE by region. | ||||||||||||||||||||
MBOE | Revenues (in millions) | Average Realized Price per BOE | Cash Production Costs (in millions) | Cash Production Costs per BOE | ||||||||||||||||
GOM | 13,163 | $ | 1,151 | $ | 87.42 | $ | 192 | $ | 14.62 | |||||||||||
California | 7,129 | 663 | 93.07 | 265 | 37.12 | |||||||||||||||
Haynesville/Madden/Other | 3,174 | 92 | 28.93 | 42 | 13.40 | |||||||||||||||
23,466 | 1,906 | 81.22 | 499 | 21.29 | ||||||||||||||||
Eagle Ford | 8,694 | 710 | 81.66 | 113 | 12.97 | |||||||||||||||
32,160 | $ | 2,616 | 81.34 | $ | 612 | 19.03 | ||||||||||||||